US retail sales: Another solid report coming on Friday - Wells Fargo

Among US economic data, the most relevant report during the current week will be on Friday: the July retail sales. Analysts from Wells Fargo expect a rise of 0.4%, in line with consensus and below the 0.6% gain of the previous month.

Key Quotes:

“Retail sales surged 0.6 percent in June ending a strong second quarter of spending. With momentum at its back, we expect July’s report to be solid as well, with a monthly rise of 0.4 percent. June’s retail sales report was strong across the spectrum, particularly at building material stores and even department store sales had a positive read. Gasoline store sales will likely be soft as national gas prices retreated in July.”

“Last week’s advance estimate of second quarter GDP had consumer spending rising 4.2 percent—the strongest since the fourth quarter of 2014. The release also highlighted the pivotal role shoppers currently play in driving the U.S. economy forward. Personal consumption contributed 2.8 percentage points to GDP growth, which was chipped down to 1.2 percent on weakness in other line items.”