Economic Takeaways of U.S. Retail Sales Gain, Weak Manufacturing
- Economists revise up 3Q consumption estimates after sales rise
- Factory output suffers biggest decline since beginning of 2014
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What you need to know about Tuesday’s economic data:
The Takeaway: The consumer is hanging in there, at least for now. The data help allay concern that volatile stock markets and sluggish global economies would prompt households to hit the brakes on spending, which has been a major contributor to growth this year. And while cheap energy wasn’t good for gas-station receipts, it’s giving households a little extra disposable income to spend at auto dealers, restaurants and health stores. Several Wall Street economists boosted their tracking estimates for third-quarter consumption after the report.