The U.S. July retail sales report was weak, but the details were about as expected.
July retail sales posted down 0.1%, with ex-auto sales up 0.4% and ex-gas and auto sales rising 0.3%. This probably starts third-quarter gross domestic product real growth in the minus column as the deflator will take away all growth in consumption, but confirmation will come in the consumer price index, which is released Thursday.
The driver of the drop in sales was motor vehicles off 2.4% — expected because of a plunge in new units sold — sporting goods fell 0.2%, and restaurant sales declined 0.2%.
There were gains in furniture of 1.0%, electronics of 0.8%, gasoline of 0.8%, and Web/mail shopping of 1.1%. Clothing sales posted up 0.2%, food rose 0.4%, building materials climbed 0.3%, and health products were flat.
— Market News International
