Retail sales soar past Wall Street estimates in July

By Investor Empires On Aug 15, 2024

Retail sales beat Wall Street estimates in July, helping ease concerns about a major slowdown in the U.S. economy.

Retail sales rose 1% in July. Economists had expected a 0.4% increase in spending, according to Bloomberg data. Meanwhile, retail sales in June were revised down to a 0.2% decline, from a previous reading that showed sales were flat for the month, according to Bloomberg data. Statistics Office data.

July sales, excluding autos and gas, rose 0.4%, beating the consensus estimate for a 0.2% gain. The control group in Tuesday’s release, which strips out many categories and volatile factors in the quarter’s GDP reading, rose 0.3% in July, beating estimates for a 0.1% gain.

Automobile and parts sales led the gains by category, rising 3.6%, while online and home appliance sales rose 1.6%.

Also on Thursday, Walmart boosted its full-year sales outlook, with CFO John Rainey telling CNBC the retailer doesn’t see “any additional erosion of consumer health.”

The updates on consumer spending come amid broader concerns about the health of the U.S. economy. The latest retail sales data, along with better-than-expected inflation readings also released this week, have economists saying the Fed should shift its focus from the path of inflation to concerns about the labor market and what a slowdown in it could mean for the broader economy.

“The focus is shifting more towards growth data,” Nicholas Brooks, head of economics and investment research at ICG, told Yahoo Finance. “I think what happens with retail sales and other indicators that capture consumer sentiment will become increasingly important indicators for markets.”