Key US retail sales preview - Nomura
Analysts at Nomura offered a preview of the key US data for today.
Key Quotes:
"Retail sales: Retail sales increased 0.6% m-o-m in September from a revised 0.2% decline in August, in line with market expectations. However, core retail sales, which are an input into GDP estimation, fell short of market expectations. It grew only modestly by 0.1% m-o-m following two consecutive months of declines.
We expect core retail sales to grow at a faster pace in October. The ISM non-manufacturing business activity index remained well above 50 in October at 57.7, indicating that activity expanded at a solid pace.
Also, consumer fundamentals remain sound. Wage growth accelerated in October and the labor market continues to create jobs at a solid pace. Taking all these factors into account, we forecast that core retail sales increased by 0.4% m-o-m in October.
On noncore components, we expect sales for motor vehicles and parts to show another strong performance as total vehicles sales grew further in October. Gasoline prices have trended higher further in October, which should boost nominal sales at gasoline stations again.
All together, we forecast that retail sales increased by 0.7% m-o-m (Consensus: 0.6%) and retail sales excluding autos increased by 0.5% m-o-m in October (Consensus: 0.5%).
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
