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15 Oct 2014
US Retail Sales fall more than expected in September - ING
FXStreet (Łódź) - James Knightley from ING believes that even though US Retail Sales fell more than expected in September, the upward revisions of August numbers bring some comfort.
Key quotes
"The US data is a little disappointing on initial reading with retail sales falling 0.3%MoM in September versus expectations of a 0.1% drop."
"The lower gasoline price translated into 0.8% lower gasoline station sales with auto sales falling by the same amount."
"Clothing was also soft (-1.2%) and building/garden equipment fell (1.1%) while the main strength was in electronics (+3.4%) thanks in no small part to Apple’s new iphone."
"The combination of this meant that the Retail sales control group, which strips out the volatile auto, gasoline, food and building materials and supposedly better maps onto the consumer spending figures within GDP, was particularly soft falling 0.2% versus expectations of a 0.4% rise."
"That all said, there have been large upward revisions to August (0.6% from 0.0%) so on balance the story remains relatively good."
"Lower gasoline prices were also a story in the PPI report, which fell 0.1%MoM versus market expectations of a 0.1% rise. Energy prices fell 0.7% on the month while the ex food and energy component was unchanged on the month."
"This lack of inflation pressure should translate into a soft CPI report next week, which may push back expectations for Fed tightening a little further and keep bond yields under downward pressure."
Key quotes
"The US data is a little disappointing on initial reading with retail sales falling 0.3%MoM in September versus expectations of a 0.1% drop."
"The lower gasoline price translated into 0.8% lower gasoline station sales with auto sales falling by the same amount."
"Clothing was also soft (-1.2%) and building/garden equipment fell (1.1%) while the main strength was in electronics (+3.4%) thanks in no small part to Apple’s new iphone."
"The combination of this meant that the Retail sales control group, which strips out the volatile auto, gasoline, food and building materials and supposedly better maps onto the consumer spending figures within GDP, was particularly soft falling 0.2% versus expectations of a 0.4% rise."
"That all said, there have been large upward revisions to August (0.6% from 0.0%) so on balance the story remains relatively good."
"Lower gasoline prices were also a story in the PPI report, which fell 0.1%MoM versus market expectations of a 0.1% rise. Energy prices fell 0.7% on the month while the ex food and energy component was unchanged on the month."
"This lack of inflation pressure should translate into a soft CPI report next week, which may push back expectations for Fed tightening a little further and keep bond yields under downward pressure."