U.S. economy picks up steam

The U.S. Federal Reserve revealed that retail sales and factory output picked up in June, illustrating how the U.S. economy is bouncing back from a slow first quarter.     Retail sales and industrial production both rose 0.6 percent month-over-month in June, according to U.S. government reports released Friday.
    Combined with positive data on jobs and an uptick in inflation earlier in the week, the news is a sign that the U.S. economy is bouncing back from a slow first quarter and leaves open the possibility that the Federal Reserve might yet raise interest rates a bit later this year.
   The growth in consumer spending was most pronounced in home improvement stores and in online sales. Purchases of automobiles and trucks were mostly flat, with apparel sales also weak.
   The manufacturing component of industrial production was up 0.4 percent month-over-month in June, largely due to an increase in motor vehicle assemblies, the Fed said.