Weekly economic review & outlook
Consumers continue to spend
JUL. 22, 2019
You Need to Know
Week in review
Retail sales up solidly again in June
Retail spending rose by 0.4 percent in June to cap a solid second quarter for the consumer — although GDP growth is still likely to slow to 2.0 percent.
Housing starts slip modestly
Declines in multifamily units drove down housing starts and building permits, while single-family starts trended higher.
Housing sales point higher on falling rates
Declining interest rates have lifted housing demand and should support increases in both new and existing home sales for June.
Second quarter real GDP growth to slow
Second quarter real GDP growth is expected to decelerate to around 2.0 percent, helped by consumer spending but slowed by trade and inventories.
Retail spending was better than expected for June with total retail sales up by 0.4 percent. Core retail sales (excluding autos, building supplies and gasoline) grew at an even faster pace – with a 0.7 percent gain as strength across several categories offset a drop at gasoline stations as prices dropped. The 12-month growth rate in core retail sales accelerated to 4.5 percent for June, far surpassing the meager pace of inflation.