US retail sales: Consumers in fine fettle – ANZ

By FXStreet FXStreet (Bali) – The ANZ Research Team notes that US retail sales numbers on Tuesday suggests that the consumer is in fine fettle.

Key Quotes

“US retail sales rose 0.2% m/m vs a revised 0.7% gain in July. Last month’s softer headline increase was driven by weaker sales at gasoline stations. The control group, which feeds directly into GDP, rose a better than expected 0.4% m/m and the July release was revised up to +0.6% (+0.3%).”

“The data suggest the consumer is in fine fettle, and hasn’t been unsettled by August’s equity volatility or slowdown in China and may now be spending some of the windfall gains from lower oil prices.”

“The data indicate above trend Q3 GDP growth and suggest further improvement in the labour market. Whilst the household sector is doing well, manufacturing is still struggling.”

“August industrial production fell 0.4% following a revised 0.9% gain in July. Manufacturing output was down 0.5% as motor vehicle production fell 6.4% m/m. Production of consumer goods, rose 0.4% m/m as did non-vehicle business equipment.”
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Source:: FX Street