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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.”