US retail sales rose at a faster-than-expected pace in September, in a sign of US consumer strength that could influence how the Federal Reserve approaches interest rate decisions at its final two meetings this year .
On a monthly basis, retail sales in the world’s largest economy rose 0.4 percent, accelerating from an unrevised 0.1 percent rise in August, Commerce Department data showed on Thursday. Economists had seen the reading at 0.3%.
In August, the figure, which includes mostly goods and is not adjusted for inflation, rose unexpectedly, while July’s number was also revised higher.
Strong spending on items such as groceries and clothing helped offset weakness in spending on higher-priced goods such as furniture and electronics last month, the numbers showed.
But analysts at Capital Economics noted that some disruption from September’s devastating Hurricane Helene was “clear” in weekly preliminary retail trade data from the Chicago Fed released on Wednesday.
“[T]he latest data shows a big drop in retail sales in the last week of September as Hurricane Helene made landfall, and Milton added to the disruption two weeks later, so the outlook for October and the fourth quarter looks more mild,” analysts said in a note to clients.
The data comes as Fed policymakers consider their next monetary policy decision in November. The central bank cut borrowing costs by 50 basis points at its last meeting in September, with officials arguing it was necessary to support the US labor market at a time of waning inflationary pressures.
Separate data from the Labor Department on Thursday showed that first-time jobless claims fell as forecast to 241,000 in the week ended Oct. 12. Last week’s number was revised up slightly to 260,000.
Meanwhile, the four-week moving average, which attempts to factor in volatility in the weekly announcement, moved up 4,750 to 236,250.
“The hot retail sales number for September[ember] fits the bullish pattern from last month […] and will push yields higher (while causing investors to further question the pace of [the Federal Open Market Committee’s] easing on rate regulation]),” Vital Knowledge analysts wrote in a note.
They added that several key data were still to come before the Fed’s next decision in November, including third-quarter gross domestic product numbers, the Fed’s preferred measure of inflation and the October jobs report.
At Bro In Finance, we are committed to helping traders navigate the complexities of the forex market. Our in-depth analysis, expert insights, and advanced tools empower you to make informed decisions and achieve your trading goals. Whether you’re a beginner or an experienced trader, Bro In Finance is your trusted partner in mastering the forex market. Visit our website for more trading tips and strategies to enhance your trading experience.
Check out our on Best Forex Brokers to know more about this topic
Check out the most crucial steps that you need to take when choosing your forex broker
Have you heard about an amazing Broker Platform called “AVATRADE“? We at Bro In Finance do recommend this amazing broker.
Check out here to figure out the best funded trader program: Which Funded Challenge is Best
Reference;
Kanowsky, S. (2024) US retail sales rise by faster than anticipated pace in September By Investing.com, Investing.com. Investing.com. Available at: https://www.investing.com/news/economic-indicators/us-retail-sales-rise-by-faster-than-anticipated-pace-in-september-3668565 (Accessed: 17 October 2024).
