Latest Updates: Related to Inflation

Consumer Spending Slows but Inflation is Still the Market Driver

08/17/2022

Retail sales were unchanged in July, while the June increase was revised downward from +1.0% to +0.8%. Last month’s weaker-than-expected sales were primarily due to drops in autos and auto parts (-1.6%) and gasoline (-1.8%). When these two volatile components are excluded, sales were up +0.7%, well above the +0.4% ex auto and gas forecast.

Moderation in sales last month were also found in clothing (-0.6%) and general merchandise stores (-0.7%). This probably reflects discounted prices on excess inventory. Sales at eating and drinking establishments were up just +0.1% in July after averaging +2.6% over the previous five months. Categories showing large increases included building materials (+1.5%) and online sales (+2.7%). The big increase in July e-commerce was fueled in large part by “Amazon Prime Day(s).”

Read the full article

Read more Economic Commentary

Learn More From HilltopSecurities

Bond Yields Rise and Stocks Retreat as Summer Price Pressures Loom

Consumer Spending Shows Signs of Weakening

Thank you for visiting the HilltopSecurities website.
For best viewing experience, we recommend using Chrome, Firefox, Safari, or Microsoft Edge.