Retail sales in USA remain unchanged

Retail sales in USA remain unchanged in July 2016, which would be a potential obstacle to economic growth in the second half. The data of the Ministry of Commerce show that values in June were revised upwards from 0.6% to 0.8% on a monthly basis. When excluding auto sales, the index recorded a decrease of 0.3%. Excluding cars and petrol, the decrease was 0.1%. On an annual basis, retail sales in USA grew by 2.3%.

The data for July made mixed messages. The sales of cars and car parts grow at a steady pace of 1.1% in July. It is not clear how much these sales will be able to support overall consumer spending. The peripheral retailers, which include mainly online stores recorded sales growth of 1.3%.

Sales of large supermarket chains decreased by 0.5%. Sales at service stations fell 2.7%, largely reflecting lower oil prices, and therefore not particularly great cause for concern. More troubling are the declines in sporting goods in grocery stores, restaurants and bars, shops for building materials, electronics and others.

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