US June retail sales 0.2% versus 0.5% expected

<ul><li>Prior was 0.3% revised higher to 0.5%</li></ul><p>Details:</p><ul><li>Retail sales MoM 0.2% versus 0.5% expected</li><li>Ex Autos 0.2% versus 0.3% expected. </li><li>Prior ex autos 0.1% revised higher to 0.3% </li><li>Control group 0.6% versus 0.3% expected. </li><li>Prior control group 0.2% revised higher to 0.3%</li><li>Retail sales ex gas and Autos 0.3%. Prior month revised from 0.4% higher to 0.5%</li><li>retail sales came in at 689.5 billion</li></ul><p>The control group came and higher at 0.6%, but the headline number was lower. </p><p>The control group is all sales, excluding receipts from auto dealers, building-materials retailers, gas stations, office supply stores, mobile homes and tobacco stores. This filtered number is a more precise method of gauging consumer spending, and consumer spending is a large component of U.S. GDP. </p><p>The overall data did have higher revisions to the prior month's data which softened the weaker headline data. The headline retail sales were revised to 0.5% from 0.3% previously reported. The control group was also revised higher to 0.3% from 0.2% previously reported.</p><p>Overall with the control group showing solid growth (and higher revisions), the data is consistent with a consumer who still remains healthy. It will keep the July rate hike certainly intact and could keep September in play. The Fed has targeted 2 more hikes between now and the year-end. </p><p>Fed's Barr is expected to speak today but on fair lending practices. As a result, there may not be much – if anything – on the economy or policy.</p>

This article was written by Greg Michalowski at www.forexlive.com.