Data released today in the US, showed July retail sales climbed above expectations. Analysts at Wells Fargo point out gains were broad-based with ten of thirteen categories seeing an increase in sales over the month. They warn that despite a delay in tariffs, spending could be at risk.
Key Quotes:
“Excluding volatile components, control group sales””an indicator of personal consumption expenditures (PCE)””rose 1.0%.”
“While we do not expect that pace to be sustained, this report sets the consumer up for another solid gain in Q3.”
“July retail sales are the latest indication that the consumer is alive and well. But, consumer confidence has come off the boil recently, suggesting caution among consumers.”
“While the delay of tariffs on about $155 billion of Chinese imports means consumers may not feel it in their wallets until after the holiday season, if confidence is hit, it may curtail spending sooner.”
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