US retail sales rose just 0.1% last month — a weaker-than-expected result that likely raises the odds for a large rate cut this week from the Federal Reserve.
Data released on Tuesday by the Commerce Department showed that the value of retail purchases rose 0.1% in August — below analyst estimates of 0.2% — as cash-strapped consumers have burned through savings and pulled back on non-essential spending.
The worse-than-expected numbers showed a substantial spending retreat compared to just last month as traders hope the Federal Reserve will issue highly-anticipated interest rate cuts after their policy meeting Wednesday.
“Any unexpected weakness in this report could reignite concerns about slowing economic momentum and potentially nudge the Federal Reserve toward a more dovish position in its upcoming interest rate decision,” Luca Santos, currency analyst at ACY Securities, told The Post in a statement.
Retail sales for the previous month had spiked 1%, above expectations of 0.4% growth. Ten of 13 categories showed growth in July.
Of the 13 categories listed by the Commerce Department, four of them showed declines in August, according to government data.
[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]
