Breaking: US Retail Sales in August increase by 0.6% vs. 1% expected

Eren Sengezer FXStreet

Retail Sales in the United States rose by 0.6% on a monthly basis in August to $537.5 billion, the data published by the US Census Bureau revealed on Wednesday. This reading followed July's increase of 0.9% (revised from 1.2%) and missed the market expectation of 1%.

Market reaction

The US Dollar Index edged slightly lower with the initial reaction to this data and was last seen losing 0.3% on the day at 92.80.

Additional takeaways

"Total sales for the June 2020 through August 2020 period were up 2.4% from the same period a year ago."

"Retail trade sales were up 0.1% from July 2020, and 5.1% above last year."

"Nonstore retailers were up 22.4% from August 2019, while clothing and clothing accessories stores were down 20.4% from last year."

Retail Sales Quick Analysis: Miserable figures good for gold as fiscal help could come sooner.

The economic recovery cannot walk on its own – that is the conclusion from America's retail sales figures for August. Expenditure grew by only 0.6%, below 1% expected and on top of a downward revision for July. The Retail Control Group – which is used for Gross Domestic Product calculations – shocked with a drop of 0.1%. Also here, it came on top of a lower level for July.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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