US retail sales contracts, cast shadows over slowing US economy

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US retail sales contracts, cast shadows over slowing US economy

On Wednesday, the 16th of October 2019, US Commerce Department’s data on US retail sales for September released by GMT 18.00, had witnessed a downturn for the worst, while US retail sales in September tumbled for the time in seven months, suggesting a sharp plunge of US manufacturing activity last month in to a decade low figure had been spreading into the broader domestic economy, leaving the door wide open for another Fed rate-cut as early as by later this month.

In point of fact, latest offbeat reports from the US Commerce Department on Wednesday (October 16th) had added to further cracks on US economy, as the data came forth shortly after release of another set of data revealing a moderation of job growth alongside service sector activity in September.

Meanwhile, according to Wednesday’s (October 16th) US Commerce Department data, US retail sales contracted by 0.3 per cent from a prior 0.6 per cent growth a month earlier, while analysts were expecting a growth of 0.3 per cent.

Aside from that, US retail sales excluding auto and gas remained unchanged against an analysts’ estimate of 0.3 per cent growth from a month earlier. More importantly, as the US economy had been hammered hard over an almost sixteen-month long trade spat with China, business sentiments crumbled dramatically which in effect had led to a steep decline in capital spending alongside a recession in the manufacturing sector.

Besides, speculating that a US recession might have started to take death toll over the economy, a chief economist at Stifel in Chicago, Lindsey Piegza said following release of Wednesday’s (October 16th) US retail sales data, “This morning’s report solidifies concerns of the consumer’s inability to perpetually support the economy alone.

With business investment declining and manufacturing activity deteriorating, many investors brushed off fears of a slowdown because the consumer was still spending. ”