This is the big economic indicator for the week for the US.
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The May 2015 to June 2015 percent change was revised from -0.3 percent (±0.5%)* to virtually unchanged (±0.2%)*. Needless to say, even that modest rate of consumer spending suggests that the public remains somewhat cautious in their willingness to open their pocketbooks.
Economists forecast that retail sales rose 0.6 percent in July, according to a survey by FactSet. “We have a vibrant labor market and the unemployment rate continues to move lower”.
Economists estimate that retail sales gained 0.6% month-on-month, and 0.4% excluding the volatile auto and gas categories.
Core retail sales were previously reported to have dipped 0.1 percent in June.
All sectors showed increases except electronics and general merchandise and department stores.
Prior to the retail sales report, economists at Morgan Stanley and Barclays Plc had already put the second-quarter reading closer to 3 percent based on previously updated figures for construction spending and inventories. This was expected as the light vehicle selling rate rose to a seasonally adjusted 17.5 million units, the second best result since early 2006. They also forecast a 0.4% rise, ex-autos. Most of the growth in retail spending has occurred at auto dealers, furniture stores and restaurants, barely offsetting the downward pressure on spending caused by lower fuel costs.
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Inc. held a Prime Day on July 15 to mark its 20th anniversary, featuring reduced prices on television sets, lawnmowers and other goods. GDP expanded at a 2.3 percent annual pace in the April-June quarter.
