Free Trial

ING: Retail Sales Miss Reflects Rebalancing Toward Services


ING saw the below-consensus July retail sales data as "a modestly disappointing outcome, although not a calamity".

  • They point to the likelihood that with the reopening of the economy, U consumers are rebalancing away "away from 'things'...and toward 'experiences'" - in other words increasing services spending (not captured by retail sales) at the expense of goods spending. Retail sales make up only 40-45% of total consumer spending.
  • They expect retail sales to continue underperforming "wider spending patterns", but that both goods and services will continue to grow, with household finances in good shape.
  • Weak consumer sentiment (seen in last week's UMichigan reading) potentially reflecting the Delta COVID wave and inflation eroding purchasing power "presents downside risks for August activity readings".

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.