United States: resilient retail sales despite reduced support

Chart of the week

While we might have feared a fall or sharp slowdown in September’s retail sales as the various household income support measures came to an end, the numbers surprised to the upside, posting a 1.9% month-on-month increase, or 1.4% excluding automobiles, fuel and building materials. Minor downward revisions to previous months failed to undo the surprisingly upbeat numbers.

Our analysis

This figure is good news at a time when household incomes are receiving less support and the number of Covid-19 cases is turning back up. In addition, the improvement in the University of Michigan’s confidence index from 80.4 to 81.2 in October is reassuring.

 

See also : https://latribune.lazardfreresgestion.fr/en/united-states-an-extraordinary-transfer-of-resources-at-least-for-the-moment/

 

The opinion expressed above is dated 16th October 2020 and is liable to change.

 

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