Retail Sales good not great in July
|Summary
Retail sales were stronger than anticipated in July. Not only were overall sales up 0.5% during the month, but upward revisions to June activity suggest the consumer is on slightly firmer footing headed into Q3. We are still cautious on the trajectory of spending in the second half amid a moderating jobs market and concerns over higher prices.
Firmer spending partly price related
There are a few things that take some of the shine off the headline reading, but overall the latest data are consistent with a consumer that keeps spending. A big part of the strength in July spending can be traced to auto sales, which rose 1.6% during the month. In looking through autos, sales were up a more modest 0.3%.
Higher prices are also at play given retail sales are reported nominally, or not adjusted for inflation. Overall goods prices were flat in August, but higher prices for heavily-imported items like household furnishings and recreational goods lifted core goods prices and make sales at some retailers look stronger than underlying volumes likely were last month.
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.