U.S. retail sales beat expectations last month with an increase of 0.6 percent in the headline figure and 0.4 percent in core retail sales (excluding auto). The forecasts are lower this time around with 0.4 percent for retail sales and 0.1 percent for core retail sales given some seasonal factors and the overall weakness of the price of gas. August sales in chain stores were weaker, but did pick up ahead of the Labor day weekend and are tracking head of last year with a growth of 1.3 percent. The Census Bureau’s Advance Report on Retail and Food Services Sales will be published on Tuesday, September 13 at 8:30 am EDT.
Lower Gas Price Expected to Lower Retail Sales in August
Retail sales has been a strong obstacle for the USD to overcome. Employment has been the strongest component pointing to a recovering U.S. economy, but the quality of the jobs has been questioned as wages have not increased. More people with jobs has not translated into more consumer spending which is what is needed to kickstart a virtuous cycle of economic growth.
U.S. Retail Sales events to watch this week:
Tuesday, September 15
8:30am USD Core Retail Sales m/m
8:30am USD Retail Sales m/m
*All times EDT
For a complete list of scheduled events in the forex market visit the MarketPulse Economic Calendar