US: Retail sales to slow after hurricane surge – Westpac

Sandeep Kanihama FXStreet Contributor

According to analysts at Westpac, US retail sales received a large boost from restocking in the month of September in the aftermath of Hurricanes Harvey and Irma.

Key Quotes

“There were two particularly notable weather effects in the month: (1) car sales surged in affected areas as consumers replaced vehicles written off in the storm; and (2) the surge in gasoline prices flattered total nominal sales.”

“Both effects will be largely absent in October. Hence our expectation that sales will rise by just 0.3% following September's 1.6% jump. The market forecast of 0.1% points to some downside risk. Broadly, it has long been hoped that confidence and job gains will drive stronger sales. However, soft wages growth continues to get in the way.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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