Weekly economic review & outlook
Consumers lead the economy forward
AUG. 19, 2019
You Need to Know
Week in review
Retail spending holding up well
Retail sales rose by 0.7 percent for July to continue a solid run – fed by positive fundamentals from the job market.
Core inflation faster again in July
The core CPI rose by 0.3 percent again in the context of tighter labor and product markets and with some likely upward influence from tariffs.
Existing home sales expected to rise for July
Spurred by lower mortgage rates and rising incomes, sales of existing homes should climb for July to around 5.40 million units.
New homes likely to rise again for July
With low availability of existing homes on the market, the trend in new home sales has been stronger this year – and July should see another gain.
Consumer spending extended its solid run with a stronger-than-expected 0.7 percent increase for retail sales in July. While Amazon’s Prime Day event provided a boost, with sales at nonstore retailers up by an outsized 2.8 percent, there was strength across most major spending categories. Sales excluding autos, which dipped for the month, rose even more rapidly at 1.0 percent — indicating a robust pace of spending by consumers.