- Prior was 0.3% revised higher to 0.5%
Details:
- Retail sales MoM 0.2% versus 0.5% expected
- Ex Autos 0.2% versus 0.3% expected.
- Prior ex autos 0.1% revised higher to 0.3%
- Control group 0.6% versus 0.3% expected.
- Prior control group 0.2% revised higher to 0.3%
- Retail sales ex gas and Autos 0.3%. Prior month revised from 0.4% higher to 0.5%
- retail sales came in at 689.5 billion
The control group came and higher at 0.6%, but the headline number was lower.
The control group is all sales, excluding receipts from auto dealers, building-materials retailers, gas stations, office supply stores, mobile homes and tobacco stores. This filtered number is a more precise method of gauging consumer spending, and consumer spending is a large component of U.S. GDP.
The overall data did have higher revisions to the prior month's data which softened the weaker headline data. The headline retail sales were revised to 0.5% from 0.3% previously reported. The control group was also revised higher to 0.3% from 0.2% previously reported.
Overall with the control group showing solid growth (and higher revisions), the data is consistent with a consumer who still remains healthy. It will keep the July rate hike certainly intact and could keep September in play. The Fed has targeted 2 more hikes between now and the year-end.
Fed's Barr is expected to speak today but on fair lending practices. As a result, there may not be much – if anything – on the economy or policy.
