Retail Sales Stellar

August retail sales data was much stronger than the consensus expected, even excluding the cash-for-clunker induced auto sales. The 2.7% increase in the strongest in 3-year and excluding autos, the 1.1% rise is the best showing in six months. Retail sales excluding auto, gasoline and building materials which feeds into calculations of GDP rose 0.7% in August after a 0.3% decline in July. The strength of the data is likely to see economists revise up Q3 GDP estimates, which have kept up in recent weeks to around 2.75% according a new wire survey. Strength was seen in clothing, sports goods, general merchandise, which all rose more than 2% each. Furniture and building material sales remained weak.

The data weighed on bonds, helped boost stocks in electronic trading and initially weighed on the dollar, as goods news often seems to these days. However, the greenback is showing some resilience, leaving the euro, after the dust settles, a little heavier. The dollar continues to recover against the yen, where the JPY90 level held yesterday and is now poised to test JPY92.
Retail Sales Stellar Retail Sales Stellar Reviewed by magonomics on September 15, 2009 Rating: 5
Powered by Blogger.