US: Staying power of consumer spending is waning – Wells Fargo – by MSalordFX RetailSales Banks UnitedStates
in August above expectations in the US. According to analysts at Wells Fargo point out the 0.3% increase was a surprise, but so was a revision that reduced last month's sales by an even larger 0.4%. “Retail sales rose 0.3% in August, but July's sales were revised down by 0.4%. Excluding autos, the actual level of retails sales is lower in August than it was in June. The staying power of consumer good spending is at last losing momentum.
“How goods spending evolves is particularly important for the outlook. Real retail sales are running around 8% above pre-pandemic levels. While that pales in comparison to the some 30% higher nominal sales are, it still emphasizes a high level of goods spending. Elevated consumption with still not fully restocked inventory levels can continue to exert upward pressure on prices and thus keep inflation running at a steep rate. This would make the Fed's job all the more challenging.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
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