U.S. retail sales grew at the strongest pace in three months in December, capping off a strong holiday shopping season and showing that as we head into 2024, the spending power of the American people remains resilient and continues to support economic growth. . However, the market believes that this strong report may delay the Federal Reserve (Fed) interest rate cut.
(Photo: ZeroHedge)
Specifically, U.S. retail sales increased by 0.6% monthly in December last year, which was higher than market expectations of 0.4% and also exceeded the previous value of 0.3%, setting the largest increase in three months; core retail sales (excluding automobiles, gasoline, building materials, Food services) increased by 0.8% month-on-month, far exceeding market expectations of 0.2% and higher than the previous value of 0.7%, the largest increase since July last year.
In terms of other data, retail sales excluding automobiles increased by 0.4% in December last year, higher than the 0.2% expected and the previous value. Retail sales excluding automobiles and natural gas increased by about 0.6%, higher than the expected 0.3%, and the previous value. flat.
Looking at the report details, 9 of the 13 categories saw sales growth, with apparel, department stores and e-commerce seeing the largest increases. Car sales rose 1.1% in December, the largest increase since May, while gas station sales fell for a third straight month as gasoline prices fell.
Among the 13 categories, 9 categories saw sales growth, with apparel, department stores and e-commerce seeing the largest increases. (Photo: ZeroHedge)
The data dashed economists’ predictions of a recession, which forecasters believe will fade this year as consumers grapple with persistent inflation, rising borrowing costs and dwindling savings.
“We continue to believe that as the impact of slower employment and wage growth begins to play out, and the likelihood of higher interest rates rises, we continue to think that The lagged impact will bring some additional losses and the U.S. economy will slow further in the future, but there are still no signs that a more severe recession is coming.”
Retail sales data mainly reflect the purchase of goods and account for a relatively small proportion of overall consumer spending. Personal consumption expenditures (PCE) data for December will be released later this month.
Consumer spending accounts for about two-thirds of the U.S. economy and is known as the “strongest pillar” of the U.S. economy, indicating that consumer spending may help drive economic growth this year.
Market Reaction
As the report dampened investors’ expectations for an early interest rate cut by the Fed, major U.S. stock indexes opened lower in early trading. 10-Year Treasury Bond Yieldanddollar indexBoth move higher.
before deadline,Dow Jones Industrial Averagefell nearly 50 points or nearly 0.1%,Nasdaq Composite Indexfell nearly 200 points or nearly 1.3%,S&P 500 Indexfell nearly 0.6%,Philadelphia SemiconductorIndex fell more than 2%, U.S. bonds 10-year yieldrose to 4.11%,dollar indexrose to 103.385.
2024-01-17 15:20:04
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