- Prior was -0.6% (revised to -0.5%)
- Ex autos +1.4% vs +0.5% expected
- Prior ex-autos -0.3% (revised to -0.2%)
- Retail sales control group +1.4% vs +0.4% expected
- Prior control was -0.4%
- Ex autos and gas +1.2% vs -0.2% prior (revised to -0.3%)
- Retail sales y/y nominal 6.0% vs 5.01% prior
This is a very strong report right down the list and yet-another reason for the Fed to hike rates. It’s also a reason to continue hiking rates beyond today.
Retail control group:
Before the data, a hike was 92% priced in and that’s unmoved. Two full hikes remain priced in through year end.
Details:
- Gasoline +3.1% m/m
- Nonstore retailers +2.6% m/m
- Electronics and appliances +1.6% m/m
- Sporting goods and hobbies +1.2% m/m
- Restaurants and bars +1.2% m/m
- Building materials -0.2%
- Furniture +1.9%
Once again, never underestimate the spending power of the US consumer. I expect we would be seeing a more notable market reaction if it weren’t Fed day. The market moves on this are minimal.
Leave a Reply