The Independent Market Observer

Economic Release Snapshot: Retail Sales Growth Accelerates in July

Posted by Sam Millette

This entry was posted on Aug 21, 2023 7:56:33 AM

and tagged In the News

Leave a comment

Monday UpdateEach week, we break down the latest U.S. economic reports, including what the results mean for the overall health of the economy. Here, you will find how economists’ forecasts compare with actual results, key takeaways to consider, as well as a list of what’s on tap for the week ahead.

Reports for the Week of August 14

Retail sales, July (Tuesday)

  • Expected/prior month retail sales monthly change: +0.4%/+0.3%
  • Actual retail sales monthly change: +0.7%

Retail sales increased more than expected in July, with both headline and core sales growth accelerating to start the second half of the year.

National Association of Home Builders Housing Market Index, August (Tuesday)

  • Expected/prior month sentiment: 56/56
  • Actual sentiment: 50

Home builder sentiment unexpectedly declined in August, marking the first drop for the index since December 2022. Home builders cited high mortgage rates and construction costs as headwinds during the month.

Housing starts and building permits, July (Wednesday)

  • Expected/prior month housing starts monthly change: +1.1%/–11.7%
  • Actual housing starts monthly change: +3.9%
  • Expected/prior month building permits monthly change: +1.5%/–3.7%
  • Actual building permits monthly change: +0.1%

Both housing starts and building permits increased in July after falling more than expected in June. These volatile measures of new home construction remained well below the recent highs we saw in 2021 and early 2022 and indicated continued home builder caution.

Industrial production, July (Wednesday)

  • Expected/prior month production change: +0.3%/–0.8%
  • Actual production change: +1.0%

Industrial production improved more than expected in July, supported by increased capacity utilization and a 0.5 percent rise in manufacturing production.

FOMC meeting minutes, July (Wednesday)

The July FOMC meeting minutes showed that central bankers did not rule out additional rate hikes if inflationary pressures rise in the future. This reinforced comments from the Fed chair following the meeting that the Fed is prepared to keep rates at restrictive levels until it’s confident that inflation is sustainably approaching its 2 percent target.

Upcoming Reports for the Week of August 21

Existing home sales, July (Tuesday)

Existing home sales are set to fall modestly in July, as high prices, rising mortgage rates, and a limited supply of homes for sale are all expected to weigh on sales.

Durable goods orders, July, preliminary (Thursday)

Headline orders are set to fall in July due to a drop in volatile transportation orders. Core orders, which strip out the impact of transport and are viewed as a proxy for business investment, are set to increase for the third consecutive month in July.


Subscribe via Email

Crash-Test Investing

Hot Topics



New Call-to-action

Conversations

Archives

see all

Subscribe


Disclosure

The information on this website is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation.

Certain sections of this commentary contain forward-looking statements that are based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is not indicative of future results. Diversification does not assure a profit or protect against loss in declining markets.

The S&P 500 Index is a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. All indices are unmanaged and investors cannot invest directly in an index.

The MSCI EAFE (Europe, Australia, Far East) Index is a free float‐adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index consists of 21 developed market country indices.

One basis point (bp) is equal to 1/100th of 1 percent, or 0.01 percent.

The VIX (CBOE Volatility Index) measures the market’s expectation of 30-day volatility across a wide range of S&P 500 options.

The forward price-to-earnings (P/E) ratio divides the current share price of the index by its estimated future earnings.

Third-party links are provided to you as a courtesy. We make no representation as to the completeness or accuracy of information provided on these websites. Information on such sites, including third-party links contained within, should not be construed as an endorsement or adoption by Commonwealth of any kind. You should consult with a financial advisor regarding your specific situation.

Member FINRASIPC

Please review our Terms of Use

Commonwealth Financial Network®