US Commerce Department said on Wednesday that the US retail sales had registered the fourth consecutive month of gains in August, however the pace of growth has been slowing down due to a warding off of a $600 weekly boost in unemployment benefit checks.
In factuality, Americans appeared to have kept spending last month over hopes of another round of pandemic stimulus, but the long-term fundamentals remained rancorous, largely due to scepticisms that a pandemic vaccine might have been at least a year away, while a slew of sporadic upsurges in pandemic cases would likely to keep a lid on the gains.
Nevertheless, according to the US Commerce Department’s retail sales data released on Wednesday, US retail sales had registered a 0.6 per cent rise in August, marking up the index’s fourth straight monthly gain in a row, though the gains in retail sales had failed to reach an analysts’ expectation of a rise of 1.1 per cent and the pace of growth had been sluggish.
Besides, a 0.6 per cent rise in August US retail sales data followed a 0.9 per cent gain in July, which had added to further pressures over the policymakers in the Capitol Hill regarding a second round of pandemic stimulus bill.
US retail sales rise, but long-term fundamentals cast a shadow
Meanwhile, as US retail sales in August had poured cold water over market optimisms ahead of a holiday shopping season, raising an alarming sign over the US consumer spending, the lifeblood of US economy accountable for roughly two-thirds of entire business activities in the United States, a chief economist at Pantheon Macroeconomics, Ian Shepherdson said followed by the reveal of Commerce Department retail sales data, “These are disappointing numbers.
And they’re probably a hint of what’s to come in the wake of the ending of enhanced unemployment benefits”.