The consumer sector appears to be stronger than indicated by employment
data. The consumer is out spending. Retail sales jumped 0.6 percent in
August after a rise of 0.3 percent the month before. Analysts
projected 0.6 percent for August. The July upward revision was
significant-previous estimate of zero.
Excluding autos, sales
gained 0.3 percent in both August and July, matching expectations.
Excluding both autos and gasoline sales were quite healthy, increasing
0.5 percent, following a rise of 0.3 percent in July. Expectations were
for 0.4 percent.
By detail, not surprisingly, motor vehicles
increased 1.5 percent. Next, building materials & garden equipment
gained 1.4 percent-suggesting some improvement in housing. Food
services & drinking places sales were up 0.6 percent, showing
healthy improvement in discretionary spending. This is a good sign for
the consumer sector.
Weakness was led by a 0.8 percent decline in gasoline sales. Also, general merchandise dipped 0.1 percent.
Overall,
August retail sales were healthy and point to moderately strong third
quarter GDP growth. Economic news has oscillated in recent months but
consumer spending may be suggesting that the economy is stronger than
suggested by labor market numbers.
No comments:
Post a Comment