The increase in retail sales in the USA last month, along with a correction up to June data on sales, softened the fears that economic activity slows down after a poor increase in employment in the last three months.
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Report of the Trade Department and Friday study of the Michigan University showing that consumer inflation expectations increased in August, even more overshadowed the prospect of excessive interest rate reduction by the federal reserve next month.
The Secretary of the US Treasury Scott Bessent said on Thursday that in his opinion a reduction in interest rates by the American central bank by half a percentage point is possible, taking into account poor employment data. Some economists, however, doubted that the Fed would resume a cycle of alleviating politics in September in the face of growing signs that inflation can accelerate because enterprises transfer higher costs of import duties to consumers.
Retail sales in the USA increased in July. Weakening of the labor market is a threat to expenses
According to the Department of Trade Department published by the Office, retail sales increased by 0.5 percent last month. After a 0.9 percent growth upper height in June. Economists surveyed by the Reuters agency forecasted that Retail sales, which mainly includes goods and is not corrected by inflation, will increase by 0.5 percent. after prior increase by 0.6 percent in June.
Sales increased by 3.9 percent in an annual basis. Cars conducted an almost universal increase in sales, and revenues in car dealerships increased by 1.6 percent. After a growing increase by 1.4 percent in June. JP Morgan analysts stated that the rush in the purchase of electric vehicles powered by batteries before the expiry of on September 30 federal tax breaks helped drive the sale of cars in July.
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Online sales increased by 0.8 percent After an increase of 0.9 percent in June. Amazon and Walmart organized sales promotions last month to lure consumers tired of inflation with large discounts, including school articles. Amazon extended the sales period to 96 hours, from typical 48, offering aggressive promotions in terms of clothing to electronics.
A study of consumer moods carried out by the Michigan University showed that the mood of consumers weakened in August, and the measure of the conditions for the purchase of long -term goods fell to the lowest level for a year, because the fears of purchasing strength increased.
