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US Retail Sales Exceed Expectations in August, Boosting Consumer Confidence
Confirmed
In Short: US retail sales grew 1.2% in August, surpassing forecasts and indicating strong consumer spending, according to Actionforex and Kitco reports.
US retail sales rebounded from a revised 0.5% contraction to 1.2% growth month on month in August, exceeding expectations for a 0.8% increase, according to Actionforex. Sales excluding autos accelerated from a revised 0.2% decline to 1.4% growth, more than double the 0.6% consensus, the report noted.
Building-material sales and department-store receipts were the principal weak spots, falling 0.2% and 0.8%, respectively, but overall, the data was better than expected, as the consensus projected a 0.8% increase in August’s headline number, according to Kitco.
Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management, said the August Retail Sales report was excellent. 'If we learned anything from this morning’s retail sales numbers, we learned that consumers have the discretionary spending power to keep themselves entertained,' he wrote.
The data does not change expectations for today’s widely anticipated Federal Reserve rate hike, but it strengthens the case against a dovish policy signal, according to Actionforex.
What's confirmed
- US retail sales rebounded from a revised 0.5% contraction to 1.2% growth month on month in August, exceeding expectations for a 0.8% increase, according to Actionforex. Sales excluding autos accelerated from a revised 0.2% decline to 1.4% growth, more than double the 0.6% consensus, the report noted.
- Building-material sales and department-store receipts were the principal weak spots, falling 0.2% and 0.8%, respectively, but overall, the data was better than expected, as the consensus projected a 0.8% increase in August’s headline number, according to Kitco.
- Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management, said the August Retail Sales report was excellent. 'If we learned anything from this morning’s retail sales numbers, we learned that consumers have the discretionary spending power to keep themselves entertained,' he wrote.
- The data does not change expectations for today’s widely anticipated Federal Reserve rate hike, but it strengthens the case against a dovish policy signal, according to Actionforex.
What's still developing
- Sales excluding both autos and gasoline rose 1.2%, while annual growth in total sales strengthened from 5.0% to 6.0%.
- Gasoline-station receipts rose 3.1% as fuel prices increased, but sales excluding gasoline still gained 1.1%, confirming that the headline surprise was not solely an energy-price effect.
- U.S. retail sales rose 1.2% in August following an unrevised reading of -0.6% in July, the U.S. Commerce Department announced on Wednesday.
- Core sales, which strip out vehicle sales, rose 1.4% in August, well above the consensus for a 0.5% gain, and following July’s downwardly revised -0.2% print.
- The latest Bureau of Labor Statistics (BLS) data shows the US Producer Price Index (PPI) climbed 5.4% annually in August, narrowly surpassing market expectations of 5.3% and accelerating from July’s upwardly revised 4.8% gain.
- Pharma collective Roivant Sciences reported that its pulmonary hypertension drug candidate mosliciguat reduced pulmonary vascular resistance in a Phase 2 trial, surpassing analysts’ expectations and lifting the company’s share price in premarket trading Tuesday.
- Analysts at Leerink Partners called the results a “blowout” in a note to investors, writing that the mid-stage trial “significantly exceeded expectations” of at least a 20% reduction.