14 Jul 2015
US retail sales confusing to you after the release? - ING
FXStreet (Guatemala) - James Knightley, analyst at ING explained that the June retail sales report paints a rather confusing picture.
Key Quotes:
"Total sales fell 0.3%MoM versus expectations of a 0.3% gain while May’s growth rate was revised down to +1% from +1.2% (although April was revised up from the initial release). There were some pretty big swings in some of the components with autos falling 1.1%MoM after a 1.8% rise last month, furniture reporting a 1.6%MoM fall after a 1.4% gain last time and clothing sales dropping 1.5%MoM after a 1.4% rise last month."
"It is possible that the early Memorial Day holiday has boosted sales in May at the expense of June. Consequently, we should perhaps look at a more smoothed profile by combining the last three months data. Indeed, the 3M annualised rate is now at 6.0% versus 5.3% last month. This shows that the situation isn’t that bad and with employment and pay rising and confidence at high levels we remain optimistic on the prospects for consumer spending."
Key Quotes:
"Total sales fell 0.3%MoM versus expectations of a 0.3% gain while May’s growth rate was revised down to +1% from +1.2% (although April was revised up from the initial release). There were some pretty big swings in some of the components with autos falling 1.1%MoM after a 1.8% rise last month, furniture reporting a 1.6%MoM fall after a 1.4% gain last time and clothing sales dropping 1.5%MoM after a 1.4% rise last month."
"It is possible that the early Memorial Day holiday has boosted sales in May at the expense of June. Consequently, we should perhaps look at a more smoothed profile by combining the last three months data. Indeed, the 3M annualised rate is now at 6.0% versus 5.3% last month. This shows that the situation isn’t that bad and with employment and pay rising and confidence at high levels we remain optimistic on the prospects for consumer spending."