Retail Sales Higher than Forecasts, PPI Doubles the Consensus
Two closely watched reports at 8:30 indicated that rising energy prices in June boosted retail sales above the average forecast, while gas prices pushed up cost pressures for producers.
Building on a half-percentage point gain in May, retail sales jumped 0.6% in June, boosted by a 5% surge in gasoline prices and a 2.3% gain in sales of motor vehicles & parts. The gain was one-tenth higher than forecasts. Since this time last year, however, sales have fallen 9%.
John Herrmann from Herrmann Forecasting calling the figures “much better than expected,” noting gains in motor vehicles sales, unit gasoline sales, and control retail sales (which mimic core consumer spending in the GDP report).
“The US economy is stabilizing (and that development is broadening-out), and we foresee numerous developments that point to a solid rebound in 2H-2009,” he said.
Less positive was the move in core sales â€
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