Retail sales just flipped the script: after a weak July, August comes in with a sharp rebound, and the details matter if you care about where the U.S. economy is headed. We walk through the August retail sales report and why a 1.2% monthly gain grabs market attention, especially with gasoline station sales up 3.1% and “core” spending measures also showing strength. If you’ve been wondering whether the consumer is finally cracking, this data argues the spending story is not over yet. We dig into the category-level moves that help explain the jump, including motor vehicles, furniture, electronics, health and personal care, internet shopping, and eating and drinking places. We also talk about why e-commerce surged and how Amazon Prime Day being pulled forward can make one month look soft and the next month look strong. It’s a good reminder that promotions and timing can distort short-term readings, even when underlying consumer demand is steady. Then we hit the key caveat: retail sales are reported in nominal dollars, not inflation-adjusted terms. That makes it hard to separate true increases in spending from higher prices, especially in categories impacted by inflation and supply chain disruptions. We close with what we’re watching as the Fed meets, and why the press conference can change the market’s interpretation of today’s data. Subscribe, share the show, and leave a review, then tell us: does this report signal real strength or just inflation in disguise? https://youtu.be/vcOZXjWQhKM Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the c...
