US retail sales surpass anticipated growth rates
In a recent statement, analyst Ralf Umlauf of Landesbank Hessen-Thüringen predicted that there are hardly any doubts about a monetary easing by the Federal Reserve at tomorrow's decision. This expectation is driven by a cooling labor market and stalled disinflation, with markets anticipating at least two more quarter-point cuts by the end of the year.
The Federal Reserve is expected to lower interest rates by 0.25 percentage points at its meeting on Wednesday, bringing the federal funds rate to a range of 4.00% to 4.25%. This would mark the first rate cut since December.
According to the Department of Commerce, retail sales showed a positive trend in August, with a 0.6% increase compared to the previous month. Excluding volatile sales of vehicles, retail sales rose by 0.7%. Economists had expected an average increase of 0.2%, and a rise of 0.4% in retail sales, excluding vehicle sales, was anticipated.
Despite the deterioration in consumer sentiment, the retail sales figures for September have not been reported yet. The consumer sentiment index compiled by the University of Michigan deteriorated in September, but the figures for August have not been mentioned in the current paragraph.
The initial determination of July sales figures was 0.5%, but they were revised upwards to a 0.6% increase. The actual retail sales figures for July, as revised, were not mentioned in the current paragraph.
Despite the lack of data for September retail sales, the overall trend suggests a positive outlook for the US economy. Consumers spent more in September compared to the previous month, as stated by analyst Ralf Umlauf, but the exact figures for September, excluding vehicle sales, have not been provided.
