Will Improving US Retail Sales Speed Up Consumer Spending?
US retail sales
US retail sales gave a strong performance in October 2016 with a 0.8% rise as compared to a 0.6% rise in September 2016. The October reading met market expectations.
Interested in SPXL? Don't miss the next report.
Receive e-mail alerts for new research on SPXL
This rise was mainly due to the increased sales of motor vehicles and building materials. Sales of building materials rose 1.1%, and sales in miscellaneous store retailers rose 2.4%.
Meanwhile, automobile sales rose 1.1% in October as compared to a rise of 1% in September. Sales from online retailers rose 0.3%, and sales from restaurants and bars rose 0.9% in October 2016. Excluding auto sales, other sales rose 0.5%.
The rise in the US (QQQ) (SPY) (SPXL) retail sales signifies that consumer spending is improving. Consumer spending is one of the most important drivers in the US economy, and this month’s strong performance indicates that consumers are optimistic. Improvements in job creation and slow improvements in wage growth are also boosting confidence in the US economy (IVV) (IWM) (VFINX).
In the next part of this series, we’ll see what indicators investors should look for this week.