US retail sales volumes jump, driven by auto and fashion sales
By Alexander Bueso
Date: Tuesday 16 Jul 2019
(Sharecast News) - US retail sales volumes grew a tad more quickly than expected last month, boosted by sales of automobiles and food and beverage stores.
According to the Department of Commerce, retail sales volumes in the States expanded at a 0.4% month-on-month pace to reach $519.43bn, following an identically-sized increase during the previous month.
Economists had anticipated an increase of 0.2% following an initially reported rise of 0.5% for May.
In comparison to a year ago, sales were ahead by 3.4%.
Excluding automobiles and parts, sales volumes were ahead by 0.4% (consensus: 0.1%) and without those from gasoline stations and automobiles they were 0.7% higher.
Sales of motor vehicles and parts jumped by 0.7% versus May, while those of furniture, building materials, food and beverage stores, health and personal care stores, and clothing were all up by 0.5%.
Commenting on Tuesday's retail sales figures, Ian Shepherdson, chief economist at Pantheon Macroeconomics, pointed out the net upwards revision to the so-called control group of retail sales which was worth four tenths of a percentage point, which he said meant second quarter consumption probably increased at a quarterly annualised pace of 4.0% or more.
"These data won't stop the Fed easing on the 31st, though for the record we remain firmly of the view that the economy does not need lower rates," he said.
"The only weak point is manufacturing, which appears to be bottoming already and in any event accounts for only 12% of GDP and 8.4% of payrolls. But we do expect this report to give pause to FOMC members pushing for a 50bp cut, which just makes no sense to us."
-- More to follow --
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