US: Spending resilience supports Dollar – UBS
|UBS economist Paul Donovan expects US December retail sales to highlight resilient consumer spending, noting that the roughly 0.8% GDP cost of tariffs has been absorbed through lower savings rates. Combined with rising nominal incomes, this should allow US consumer spending to continue, while import and export price data are seen as less central now that tariff pass-through is better understood.
US retail sales and tariff impact
"US December retail sales data should show the consumer defiantly spending."
"The roughly 0.8% GDP cost of tariffs has been met by consumers cutting monthly savings rates."
"That, combined with rising nominal incomes, should allow consumer spending to continue."
"US import and export prices are due, but these are less of a focus now the narrative about tariff cost pass through has become clear."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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.