The important line in the US retail sales report is the 'control group'. It's the measures that strips out potential autos, gas and building supplies.
It fell 0.1% in August compared to a +0.4% reading expected. In addition, the July reading was revised down to -0.1% from 0.0%.
slowdown in automotive sales was expected after poor numbers from
dealers at the start of the month but the pain appeared to be more
broadly based and that raises some concerns about the economy. Consumers
have been a rock solid source of strength for US growth so far this
year and Federal Reserve members have frequently forecast a
Drilling into the categories:
been peddling this line for quite sometime and has said on many
occasions that any hike would be a mistake. He may be right on a lot of
his points but he doesn't seem to take any of the recovery into account
when making these comments. Should the Fed be raising now? That's open
for discussion. Should they have raised rates based on how the economy
has recovered from the bottom, I think so.