US retail sales rise despite tariffs
However, a softening labor market and higher goods prices could curb growth in consumer spending in the third quarter. Retail sales rose 0.5 percent last month after an upwardly revised 0.9 percent gain in June, the Commerce Department's Census Bureau said on Friday.
Economists polled by Reuters had forecast that retail sales, which are mostly goods and not adjusted for inflation, would advance 0.5 percent after a previously reported 0.6 percent rise in June . 'July's retail sales figures weren't necessarily a blowout, with headline figures missing expectations,' Bret Kenwell, a US investment analyst at eToro, told the Daily Mail.
'But in a world where there are plenty of macro-related worries tied to inflation and employment, consumers are still out there spending.' Part of the rise in retail sales last month could be due to tariff-driven price increases rather than volumes.
A rush to buy battery-powered electric vehicles ahead of the September 30 expiration of federal government tax credits helped to drive automobile sales in July, analysts at JP Morgan said. Amazon and Walmart held sales promotions last month to lure inflation-weary consumers with deep discounts, including on back-to-school essentials.
Prime Day eventually became a blockbuster for the e-commerce giant. 'This partly shows the consumer receptiveness to deals and offers, especially in an environment where there is nervousness around future price increases.' Neil Saunders, retail expert at GlobalData, told the Daily Mail.
Amazon extended its sales window to 96 hours, up from the typical 48, featuring aggressive promotions on categories ranging from apparel to electronics. But downside risks to consumer spending are steadily rising. Middle- and higher-income households are mostly driving spending.
Bank of America Institute said an analysis of deposit data showed a widening in the wage gap between lower-income and higher-income households, an indication the labor market "appears to have deteriorated most significantly for lower-income workers." It said while lower-income households might not be losing their jobs, "soft labor demand is pressuring their pay and they are potentially working fewer hours."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
17 minutes ago
- The Independent
Playboy is moving its headquarters to Miami Beach and opening a new club
Playboy plans to relocate its global headquarters from Los Angeles to Miami Beach and open a Playboy club there. The Miami Beach headquarters at the top of a luxury office building will include studios to support Playboy's 'growing creator network' and the club will have a restaurant as well as a members-only section inspired by the Playboy Mansion in Los Angeles, the company said Thursday in a statement. 'Miami Beach is among the most dynamic and culturally influential cities in the country, making it the ideal home for Playboy's next chapter,' Ben Kohn, CEO of Playboy Inc., said in the statement. The first Playboy Magazine was published in 1953, featuring Marilyn Monroe on the cover and in a 'Sweetheart of the Month' color nude photo inside. The first Playboy Club opened in 1960 in Chicago, which was the headquarters of the company at the time, and the company opened up clubs around the world. In 2020, Playboy ceased publishing its monthly print magazine, sticking instead with online content.
Reuters
17 minutes ago
- Reuters
US appeals court grants Argentina request to put YPF share turnover on hold
NEW YORK, Aug 15 (Reuters) - A U.S. appeals court on Friday granted Argentina's request to put on temporary hold a judge's order that it turn over its 51% stake in oil and gas company YPF ( opens new tab to partially satisfy a $16.1 billion judgment won by two investors. The 2nd U.S. Circuit Court of Appeals in Manhattan stayed U.S. District Judge Loretta Preska's June 30 turnover order while Argentina appeals. Argentina has warned that it would suffer irreparable harm and its economy could be destabilized if it gave up its stake in YPF, the country's largest energy company. The appeals court did not provide reasons for its order. Preska had awarded the $16.1 billion in September 2023 to Petersen Energia Inversora and Eton Park Capital Management. They sued over Argentina's 2012 decision to seize the YPF stake from Spain's Repsol ( opens new tab without making a tender offer to minority shareholders. Lawyers for Petersen and Eton Park did not immediately respond to requests for comment. A spokesperson for Argentina's government said it was confident the $16.1 billion judgment would be overturned in the appeal.
Reuters
17 minutes ago
- Reuters
Dow ends higher after UnitedHealth gains, other indexes slip on rate cut uncertainty
NEW YORK, Aug 15 (Reuters) - The blue-chip Dow Jones ended higher after hitting an intraday record high on Friday, as UnitedHealth's shares jumped after Berkshire Hathaway raised its stake, but other Wall Street indexes slipped as mixed data clouded the Federal Reserve's next monetary policy move. A meeting between U.S. President Donald Trump and Russian counterpart Vladimir Putin was also on the radar, with markets hoping it could pave the way for a resolution to the Ukraine conflict and determine the outlook for crude prices. The two leaders began a meeting in Alaska on Friday afternoon. UnitedHealth Group (UNH.N), opens new tab rose sharply after Warren Buffett's company (BRKa.N), opens new tab revealed a new investment in the health insurer, while Michael Burry's Scion Asset Management also turned more bullish on the company. Rising costs in the broader healthcare sector and about a 40% slump in UnitedHealth's shares this year have left the Dow (.DJI), opens new tab lagging its Wall Street peers on the road to record highs. The price-weighted index last scaled an all-time high on December 4. The healthcare sector (.SPXHC), opens new tab gained on Friday, tracking its best weekly performance since October 2022. According to preliminary data, the S&P 500 (.SPX), opens new tab lost 18.86 points, or 0.29%, to end at 6,449.68 points, while the Nasdaq Composite (.IXIC), opens new tab lost 83.99 points, or 0.40%, to 21,626.68. The Dow Jones Industrial Average (.DJI), opens new tab rose 43.83 points, or 0.10%, to 44,955.09. More broadly, Wall Street's main stock indexes recorded their second week of gains, buoyed by expectations that the Fed could restart its monetary policy easing cycle with a 25-basis-point interest rate cut in September. The central bank last lowered borrowing costs in December and said U.S. tariffs could add to price pressures. However, recent labor market weakness and signs that tariff-induced inflation was yet to reflect in headline consumer prices have made investors confident of a potential dovish move next month. "The question is, has the tariff gotten into the price of goods yet? And it appears that there hasn't," said Joe Saluzzi, co-head of equity trading at Themis Trading. Saluzzi also said while markets have largely priced in a September rate cut, investors might be overlooking risks, with low volatility and rich valuations pointing to a sense of complacency. In a mixed day for economic data, a report showed retail sales in July rose as expected, but consumer confidence and factory production numbers indicated tariffs were taking a toll on other pockets of the economy. Chicago Fed President Austan Goolsbee was also cautionary in his remarks. Trump has said he will unveil tariffs on steel and semiconductors next week. Among other stocks that were on the move, Applied Materials (AMAT.O), opens new tab tumbled after the chip equipment maker issued weak fourth-quarter forecasts. Shares of Bank of America (BAC.N), opens new tab dropped after Berkshire Hathaway reduced its stake in the second-biggest U.S. lender by 4.2% to 605.3 million shares. It still owns about an 8% stake in BofA. Intel (INTC.O), opens new tab surged after a report said the Trump administration was in talks for the U.S. government to potentially take a stake in the chipmaker.
