Retail sales unexpectedly drop for first time in 9 months — making it difficult for Fed to hike rates

Retail sales unexpectedly fell, attributed in part to a timing effect after Amazon pulled Prime Day forward to June from July. The decline also reflects a retreat in gasoline prices, which can weigh on spending categories tied to energy costs. Net effect suggests soft consumer demand signals but driven by partially transitory factors.

Analysis

Retail sales unexpectedly fell, attributed in part to a timing effect after Amazon pulled Prime Day forward to June from July. The decline also reflects a retreat in gasoline prices, which can weigh on spending categories tied to energy costs. Net effect suggests soft consumer demand signals but driven by partially transitory factors.