U.S. Retail Sales Rose 0.3% in August as Pressure from Gas Prices Eased By Investing.com
Economic Indicators 2 hours ago (Sep 15, 2022 13:52)
By Geoffrey Smith
Investing.com — U.S. retail sales rose surprisingly in August by 0.3%, as a fall in gasoline prices prompted consumers to drop some of their recent caution with regard to other areas of spending.
Spending on autos and parts rose a hefty 2.8%, while there were also notable gains for general merchandise stores, hospitality venues and sporting goods shops.
Despite that, however, core retail sales, which exclude spending on autos, fell 0.3% on the month, a sign that the highest inflation in 40 years is depressing demand. That weakness was also evident in the Census Bureau revising down its estimate for July’s retail sales to show a drop of 0.4%.
Overall, retail sales were up 9.1% from August last year, which equate to an increase of less than 1% when adjusted for inflation.
The figures have been made harder to interpret by the big drop in gasoline prices over the month, which eased the squeeze on consumers’ more disposable income. Sales at gas stations fell 4.2%, while sales excluding gasoline and autos rose 0.3%.
The trend in retail sales has been gradually weakening throughout the year as consumers use up the savings that they accumulated during the pandemic. It is, however, still being supported by the strength of the labor market, where initial claims for jobless benefits continued their summer decline last week to stand at only 213,000. their lowest since May.
Other data published on Thursday were more consistent with the retail sales numbers than with jobless claims. U.S. industrial production, meanwhile, fell for the second time in three months, by 0.2%, missing expectations for an unchanged reading.
The Philadelphia Federal Reserve’s index of manufacturing activity also fell to -9.9, with slowdowns in all of the main subindexes for new orders, employment, capital spending and, crucially, prices paid.
Price pressures in the economy appear to be easing in part because of the normalization in freight markets, as China overcomes the problems it suffered earlier in the year with the lockdown of key ports such as Shanghai. Import price data published on Thursday showed a second straight fall in August, by 1.0%, while the backlog of ships waiting to dock at Los Angeles’ Long Beach port has fallen from over 100 in May to 20 as of this week.
U.S. Retail Sales Rose 0.3% in August as Pressure from Gas Prices Eased
By David Milliken and Elizabeth Piper LONDON (Reuters) -Britain’s new finance minister, Kwasi Kwarteng, will deliver an emergency mini-budget on Sept. 23 to give more details…
PARIS (Reuters) – France plans to double in December the amount of capital reserves banks have to keep on hand for a downturn in the economic cycle, the financial stability…
By Scott Kanowsky
Investing.com — The number of Americans filing for unemployment insurance unexpectedly fell last week, according to data from the Department of Labor, as labor…
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.