Retail sales increased +0.2% in July from the previous month, according to the U.S. Census Bureau. This was slightly less than expected.
However, there were a couple of silver linings in the report. First, when you strip out autos, retail sales were up a solid +0.5%, which was above consensus. Secondly, June's sales were revised higher - from +0.4% to +0.6%.
Year-over-year, retail sales ex-gasoline rose +5.5% in July. This is between the 4-6% range that has been the norm since early 2012, as you can see in the below from Calculated Risk Blog:
Keep in mind that these numbers are not adjusted for inflation.
Where's the Wealth Effect?
Despite all-time highs in the stock market and a recovering housing market, consumers don't appear to be spending at a faster rate than they were a year ago.
What do you think it will take to get consumers spending more? A better labor market? A stronger recovery in housing? Even higher stock prices? Something else?
Chime in below.
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