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Why MNI
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.
US DATA
June's retail sales report was weak when merely considering headline data (at +0.2% M/M vs +0.5% expected) but strong in most other respects.
- Ex-auto/gas sales were in line with expectations at +0.3% and the control group of +0.6% was double the expected 0.3%. May's data was also revised up for the most part.
- Looking at the details of the report by category, it was very mixed, however: we saw strong growth in nonstore retailers (i.e. online, at +1.9%), misc store retailers (+2.0%) as well as furniture (+1.4%) and electronics / appliances (+1.1%).
- Dragging down the headline number though were contractions in building materials (-1.2%), sporting goods (-1.0%), general merchandise (-0.1%, with department stores -2.4%). And as expected, motor vehicle sales were flat (+0.3%), and gas stations very contractionary on lower prices (-1.4%). The weakest restaurants/bars spending of the year since February also raises a few questions, but this sector still showed growth (+0.1%).
- The level of retail sales hit the highest since January in both nominal and real (CPI index deflated) terms. Nominal was up 1.5% Y/Y, with the "real" index contracting by 1.6% Y/Y.
- Overall when considering the strong control group (a GDP input) and the robustness in categories that suggest continued durable goods purchases, this was a report that suggests little sign of consumer weakness at the end of Q2.
Source: Census Bureau, BLS, MNI
Why MNI
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.
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