Leftover Gas Money & A Little More Cash for Holiday Spending
|Retail sales were up 0.2% in November. Gas stations saw a price-related 2.3% decline, but other categories did better. Control group retail sales, a proxy for PCE, grew 0.9%, the best monthly print for the year so far.
Consumer Spending on Pace for a Decent Q4
-
Despite worries about slower growth in other parts of the economy, the surge in control group sales suggests consumer spending is on track to finish the year with momentum.
-
The headline print was held back by the fact that gas prices in November were off by about a third from where they were in October. For retailers in other categories though, this is good news as smaller gas outlays mean more money for other items.
Holiday Sales Coming in Hot
- This is the first month for holiday sales and despite some earlier downward revisions, our forecast for a 4.5% increase over last year's holiday spending number appears to be on track. We'd need to see a December increase of 0.3% in holiday-related outlays to hit our target. Further out, we're less sanguine on the consumer. Come January, the holiday bills come due, and as we hit the anniversary of tax cuts, the year-to-year comps get tougher.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.