Retail Sales Advance, Sentiment Eases: U.S. Economic Takeaways
- Some economists raise 2Q growth forecasts after retail report
- Michigan survey shows market volatility damped expectations
Consumers, Banks as Signs of U.S. Economic Optimism
What you need to know about Friday’s U.S. economic data:
The Takeaway: The American consumer showed no sign of letting up last month. The retail sales control group, used to calculate gross domestic product and which excludes autos, building materials, food and gasoline, rose at a 7.4 percent annualized rate in the second quarter. That’s the fastest in two years and indicates consumer spending rebounded strongly during the period after a slow start to the year. Economists at Barclays, JPMorgan Chase and Morgan Stanley were among those raising their second-quarter economic growth projections after the report. The figures show household spending is helping galvanize the U.S. economy even as uncertainty in global markets, including concerns about Brexit’s impact, threatens to restrain business investment.