The value of overall sales rose 0.2% after a 1.1% increase the prior month, but we note that YoY (unadjusted) saw a modest slowdown in growth…
But, sales in the so-called control group subset, which some analysts use to gauge underlying consumer demand, surged 0.9% MoM – smashing expectations of +0.4% – its biggest monthly jump in 12 months…
Under the hood, most sectors (9 of 13) saw increases in sales but there were drops in building materials, clothing stores, and gas stations (down 2.3% – the biggest drop since May 2017).
he nonstore category, which includes online shopping, jumped 2.3%, the most in a year.
So, this “great” news will prompt Powell to hike next week and shift back to his 3 (or 4) hikes next year? Or is good news bad?
The SPDR S&P Retail ETF (XRT) was trading at $41.93 per share on Friday afternoon, down $0.59 (-1.39%). Year-to-date, XRT has declined -6.93%, versus a -2.02% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Zero Hedge.