US: July retail sales to be solid with a monthly rise of 0.4 percent – Wells Fargo

Research Team at Wells Fargo, notes that the US retail sales surged 0.6 percent in June ending a strong second quarter of spending and with momentum at its back, we expect July’s report to be solid as well, with a monthly rise of 0.4 percent.

Key Quotes

“June’s retail sales report was strong across the spectrum, particularly at building material stores and even department store sales had a positive read. Gasoline store sales will likely be soft as national gas prices retreated in July.

Last week’s advance estimate of second quarter GDP had consumer spending rising 4.2 percent—the strongest since the fourth quarter of 2014. The release also highlighted the pivotal role shoppers currently play in driving the U.S. economy forward. Personal consumption contributed 2.8 percentage points to GDP growth, which was chipped down to 1.2 percent on weakness in other line items.”