• U.S. retail sales increase less than forecast in August

Market news

16 September 2020

U.S. retail sales increase less than forecast in August

The Commerce Department reported on Wednesday the sales at U.S. retailers rose 0.6 percent m-o-m in August, following a revised 0.9 percent m-o-m increase in July (originally a 1.2 percent m-o-m gain).

Economists had expected total sales would advance 1.0 percent m-o-m in August.

According to the report, the largest gains in retail sales were recorded in food services and drinking (+4.7 percent m-o-m), clothing (+2.9 percent m-o-m) and furniture (+2.1 percent m-o-m). In addition, gasoline prices rose, supporting receipts at service stations (+0.4 percent m-o-m), while sales of autos edged up 0.2 percent m-o-m.

Excluding auto, retail sales grew 0.7 percent m-o-m in August after a revised 1.3 percent m-o-m climb in the previous month (originally a 1.9 percent m-o-m surge), worse than economists’ forecast of a 0.9 percent m-o-m advance.

Meanwhile, closely watched core retail sales, which exclude automobiles, gasoline, building materials and food services, and are used in GDP calculations, edged down 0.1 m-o-m in August after a downwardly revised 0.9 percent m-o-m rise in July (originally a 1.4 percent m-o-m jump). Economists had forecast core retail sales growing 0.5 percent m-o-m in August.

In y-o-y terms, the U.S. retail sales rose 2.6 percent in August after a revised 2.4 climb in the previous month (originally a 2.7 percent raise). 

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