Categories: Market Overview

Strong US retail sales pull markets up

US retail sales sharply exceeded expectations, adding 17.7% in May (+ 7.9% exp.). Sales ex-auto soared 12.4% mom (+5.5% exp.). Recovery turned out to be much more dynamic than anticipated. Vivid data triggered increased purchases in the markets. S&P500 added more than 1.5% in the last hour, enhancing its growth after these data. Such a sharp strengthening of the indicator is another argument in favour of a V-shaped economic recovery.

Nevertheless, it will not be superfluous to look at the broader picture. Despite the rebound, retail sales are 8.3% below the January peak. Excluding auto, the decrease is 8.8%. As is the case with labour market data, the initial rebound in macroeconomic data is unlikely to continue to be as easy as it soon rests on cost-cutting Americans who have lost their jobs. There is an impressive share of Americans who have not lost their jobs but switched to a crisis mode of consumption, fearing for their work in the future.

The FxPro Analyst Team

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

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