He consumption of goods continued to grow in USA in July and was above what was expected by the market, suggesting that consumption remains solid despite the fact that the inflation that moderates and the successive rises in interest rates by the Federal Reserve (FED).
In July the total amount of retail sales reached US$696.4 billion, according to data published Tuesday by the Department of Commerce.
The retail sales index grew 0.7% over June, after rising 0.3% the previous month, the highest indicator since last January. This way, July increase is higher than the 0.4% expected by analystsaccording to the consensus gathered by briefing.com.
Retail sales: how much they grew in the last year
In the year-on-year comparison, the increase is 3.2%, and is mainly explained by the online saleswhich fueled the trend with a year-on-year increase of 10.3% versus a 0.6% increase for open store sales.
“The consumers spent more on services in recent monthsbut summer (boreal) balances boosted spending online and, to a lesser extent, in stores, particularly before the start of school,” he said in a note Kayla Bruunanalyst of Morning Consultation.
A wide range of categories posted sales gains, with increases in nine of 13 categories, including dress, pubs and restaurantsand the e-commercethe latter with a growth of 1.9%.
Meanwhile, tickets at service stations grew 0.4%, although they partly reflected higher prices at the counter.
Among the categories that registered falls are furniture (-1.8%) and electronics (-1.3%).
The strength of consumption reflects the drop in inflation and the recovery of real wages which, in July, rose 1.1% annually; as well as the continuous incorporation of jobs and the low unemployment rate In the labor market.
Wall Street falls after retail sales data
In the day, the index S&P 500 suffers a 1% drop, while the Dow Jones Industrial Average it falls 0.8% to reach 35,023.92 points. Simultaneously, the compound nasdaq experiences a decrease of 0.7%.
Source: Ambito
