US retail sales surge in May, ease slowdown concerns


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US retail sales surge in May, ease slowdown concerns

On Friday, the 14th of June 2019, the US Commerce Department’s retail sales data released by GMT. 12.30, had posted a notable upsurge in May, and a revised retail sales figure for April were higher than prior estimates, pointing towards a robust consumer spending which eventually headed off threats that the US economy had been slowing sharply over the second quarter of 2019.

Aside from the strong sales data, the US factory data in May had also picked up, while there had been a flurry of downbeat data as well, as hiring in May were muzzled and inflation indicators were timid, which could eventually prompt the Fed to start-off a cycle of rate cut by the end of this year, analysts suggested.

Although US economy was set to celebrate its tenth straight year of expansion next month, its longest streak in history, financial markets had been betting on two rate cuts this year, mostly driven by an escalated trade spat with China and a slowing global economy leading to a sharp decline of demands.

Adding that nothing is yet taken for granted in US economy, a chief economist at MUFG in New York, Chris Rupkey said, “Don’t count this economy out yet, the consumer is saying, as they show the way by opening their wallets and purses to spend the money that makes the economy hum”.