Retail Sales
The first of this morning’s three economic reports was July’s Retail Sales report at 8:30 AM ET this morning. It revealed a 0.5% rise in consumer spending following June’s upwardly revised 0.9% increase. If more costly and volatile auto transactions are excluded, sales rose 0.3%. Both headline numbers pegged forecasts, but both were also revised higher for June by 0.3%. These numbers mean consumers are continuing to spend money, fueling economic growth. They aren’t strong enough to alter the likelihood of the Fed cutting key rates next month, but could play a role in the Fed’s debate process by supporting the theory the economy is still strengthening despite tariffs and where key rates currently are. Cutting rates when the economy is growing on its own raises the threat of inflation flaring.