Retail Sales: Accelerating Consumption

Bottom Line:   Retail sales rose sharply more than expected in July, led by online sales amid Amazon's Prime Day and another jump in spending at restaurants and bars. Spending growth was modest to robust across nearly all categories except home furnishings and electronics. Overall, the 3rd Quarter started on a solid note for consumption. On a trend basis, core sales have accelerated, up 9.1% annualized in the last three months, sharply higher than the pace of the last six months, 2.9%, and even above the 12-month pace of 5.3%.

Total US Retail Sales ROSE 0.73%  in July (consensus was +0.4 %), May was revised up to +0.66% from 0.51%, and Jun up to +0.31% from 0.19%.Core Retail Sales (excludes Autos, Parts & Gas) ROSE 1.04%  (consensus was +0.4 %). Sales in the Control Group (Core less food services and building supply) ROSE 0.99%  (consensus was +0.5 %).