Retail sales leap in July on Amazon Prime Day boost, higher gas prices
Amazon Prime Day, which took in $6.4 billion in online orders, looks to have helped power a stronger-than-expected tally for July retail sales.
U.S. retail sales powered higher last month, data from the Commerce Department indicated Tuesday, as higher gas prices and a boost from Amazon's Prime Day event underscored on ongoing strength of the domestic consumer.
July retail sales rose 0.7% to a collective $696.4 billion, the Commerce Department said, nearly double the Street consensus forecast of a 0.4% gain. The figure is not adjusted for inflation, and includes overall sales of gasoline and other goods that have been volatile in recent months.
The June total was revised to a gain of 0.3% from the original estimate of a 0.2% month-on-month advance, the report also indicated.
Stripping out the auto sector, July retail sales were up 1%, the report noted, while stand-alone sales of gasoline were up 0.4% as prices rose to $3.712 per gallon on average over month, according to data from the U.S. Energy Information Administration, compared to an average of $3.684 per gallon in June.
The closely-tracked control group number, which excludes autos, building materials, office suppliers, gas station sales and tobacco and feeds into the government's GDP calculations, rose 1%, firmly ahead of analyst's estimates of a 0.2% gain.
Inflationary pressures picked-up modestly in July, according to data from the Bureau of Labor Statistics last week, with headline CPI rising to 3.2% from a two-year low of 3% in June.
U.S. stocks were little-changed following the data release, with futures tied the Dow Jones Industrial Average indicating a 275 point opening bell decline and those linked to the S&P 500 priced for a 30 point pullback.
Benchmark 10-year Treasury note yields rose 5 basis points to 4.274% following the data release while the dollar index was marked 0.05% higher on the session at 103.245 against a basket of six global currencies. Benchmark 2-year note yields moved past the 5% mark to 5.01%
- Get investment guidance from trusted portfolio managers without the management fees. Sign up for Action Alerts PLUS now.
What's Your Reaction?
