MNI BRIEF: US Retail Sales Surprisingly Strong, Claims Lower

MNI (WASHINGTON) - U.S. retail sales in July came in much stronger than markets expected while initial jobless claims fell in the latest week, signs consumer demand and the labor market remain strong. 

Retail sales rose 1.0% last month, against expectations for a 0.4% gain, and the control group added 0.3%, the Bureau of Economic Analysis said. Initial jobless claims fell 7,000 to 227,000 in the week ended Aug. 10, the Bureau of Labor Statistics said Thursday, below expectations for a second straight week. Continuing claims also surprised lower at a seasonally adjusted rate of 1.864 million.

Treasuries futures fell on the data as traders pared back expectations for a jumbo 50 basis point cut in September. (See: MNI: Fed Seen Sticking To 25BP Cut In Sept Post-CPI- Ex-Staff )