Retailers report rebound in sales

? Shoppers who disappeared from the stores in June returned in July to snap up cars and other big-ticket items while raising hopes the worrisome economic slowdown in the early summer will not last long.

The Commerce Department reported Thursday that retail sales rebounded by 0.7 percent last month. Consumer demand for autos was strong with the return of attractive incentive offers from dealers.

In other good news, the Labor Department reported that the number of laid-off workers filing new claims for unemployment benefits fell by 4,000 last week to 333,000, the smallest total in five weeks.

Economists said both reports should help relieve worries that an early summer slowdown could broaden into a more serious threat to the economic recovery.

“Consumers are still spending their money, and that points to solid growth ahead,” said Joel Naroff, head of Naroff Economic Advisors.

The July sales rebound was smaller than the 1 percent advance forecast. But the government also revised its original estimate of a 1.1 percent plunge in retail sales in June, to show a decline of 0.5 percent.

Analysts said July’s gain and June’s smaller decline presented a more comforting picture that consumer spending, which accounts for two-thirds of total economic activity, was not threatening to collapse.