Retail Sales, New Homes Data and Fed Minutes Provide a Late-Summer Read on the Economy – By Tim Smart (US News) / Aug 14, 2023
Retail sales, new homes data and Fed minutes this week may signal whether the economy will slow as the summer winds down.
A mixed bag of economic reports should shed some light on the economy’s health this week as the summer winds down.
First up on Tuesday will be the July report on retail sales. Economists are looking for a gain of 0.4% following June’s 0.2% increase. But since retail sales are not adjusted for inflation and gasoline prices have been rising, the report may not provide a full picture of how retail activity is faring and how strong of a bounce stores saw from back to school spending.
Economists expect that retail sales received a bump last month from Amazon’s Prime Day.
“Looking ahead, the outlook for the consumer is mixed,” Sam Bullard, managing director and senior economist for Wells Fargo’s corporate and investment banking group, said on Sunday. “On one hand, improving consumer confidence, moderating inflation and a still-tight labor market producing decent wage growth are a positive to resilient consumer staying power. Yet with more broadly tighter financial conditions, diminishing excess savings, slowing household income growth and the resumption of student loan debt service are likely to prove to be material headwinds to consumer spending growth in the coming months.”
