U.S. retail sales likely to have dropped in August - TD Economics

U.S. retail sales are likely to have dropped in August. According to a TD Economics research report, the retail sales are expected to have dropped 0.1 percent, owing to a fall in motor vehicle sales. Light weight auto and truck sales dropped at a 16 million annual rate last month, partially because of the aftermath of Hurricane Harvey that hit Houston, which is the second largest auto market in the U.S.

The August sales figure came in below analysts’ expectations, indicating towards weaker third quarter real PCE close to a mid to low 2 percent rate. Countering the August drop in auto sales are gasoline station receipts, reflecting a considerable increase in gasoline prices.

Retail sales, excluding auto sales, are likely to have risen 0.5 percent, whereas the control group is expected to have risen a heathy 0.3 percent, added TD Economics. Control group excludes auto, gasoline station, food services and building material sales.

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