Retail sales rose 0.2% last month

Retail sales rose 0.2% last month

July 18:

Advance retail sales were up only 0.2% in June, less than had been expected. But excluding auto and gas, sales rose 0.3%, which is right about what analysts anticipated. Retail sales are not adjusted for price differences, and the auto and gas drop was due in part to a 1.4% decrease in sales at gas stations.  

A subset of overall retail sales that’s referred to as the “control group” and feeds into Gross Domestic Product calculations increased 0.6%, surpassing expectations.

Surprise drop in manufacturing output in June

The manufacturing component of industrial production dropped 0.3% in June. The other two components of industrial production, mining and utilities, were down 0.2% and 2.6%, respectively, causing the entire index to fall 0.5%.

Capacity utilization dropped to 78.9% in June, from 79.4% in May.

State of the market

This morning, the Dow traded up and Treasury yields were down relative to Monday morning.

Economic calendar

Wednesday, July 19

  • Housing Starts/Building Permits

Thursday, July 20

  • Philadelphia Fed Manufacturing Business Outlook
  • Weekly Initial Jobless Claims
  • Existing Home Sales
  • Leading Indicators

Treasury calendar

Wednesday, July 19

  • $12 billion auction of 20-year Treasury bonds

Thursday, July 20

  • $17 billion auction of 10-year Treasury Inflation-Protected Securities

By Mike Kraft, Executive Director and Commercial Real Estate Treasurer for Commercial Banking at JPMorgan Chase

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