· U.S.
retail sales last month dipped 0.1%, right on Consensus expectations.
The decline followed an upwardly
revised June rise of 0.3%. On a three-month basis overall retail sales
rose at a 4.1% annual rate, even with last year's 4.0% increase.
· The overall gain was diminished by another sharp decline in sales of motor vehicles & parts. A 2.4% drop (-10.5% y/y) followed the 2.1% June decline (revised shallower) and they are down at a 19.7% annual rate during the last three months.
· Retail sales excluding autos rose 0.4% in July. That increase about equaled Consensus expectations.
· Higher gas prices again lifted
retail sales last month. Sales at gasoline service stations increased
0.8% (24.6% y/y) after gains of 4.0% and 3.3% during the prior two
months.
· Less gasoline & autos, retail sales rose 0.3% (3.4% y/y) following an upwardly revised 0.4% increase during June. Still, the latest increase was the weakest since February. Sales on a three-month basis rose at a firm 6.4% annual rate.
· Purchases made from home continued strong as July sales of nonstore retailers (internet & catalogue) jumped 1.1% (7.7% y/y). That followed an unrevised 0.8% June increase. On a three-month basis these sales rose at a 12.4% annual rate.
· Sales at general merchandise stores rose 0.3% (5.2% y/y) following an upwardly revised 0.6% gain during June. Sales of furniture, home furnishings & appliance reversed the June decline and rose 0.9% (-0.2% y/y). Sales of furniture & home furnishings rose 1.0% (-4.8% y/y). Apparel store sales ticked up 0.2% (0.9% y/y).
· Building materials & garden equipment sales reversed their June decline and rose 0.3% (-1.0% y/y).
· Unanchored Expectations? Interpreting the Evidence from Inflation Surveys from the Federal Reserve Bank of San Francisco is available here.