Car sales were again behind the larger-than-expected US retail sales figure for September with clothing and restaurants and bars the next largest growth segments.
The US Commerce Department released retail sales figures showing a 0.1% increase for the month, slightly less than the 0.2% expected but higher than the August figures which were revised down from 0.1% to 0%. The September figures are the seventh non-negative month in a row and represent a 2.2% increase from September 2014.
ANZ and Westpac called the figures “disappointing” and while ANZ bank still expects a December rate rise for the US, it thinks the likelihood has been reduced by these figures. US cash futures now imply a 30% chance of a rise by December and US 10 year Treasury yields fell 5bps on the day to 1.99%. However, known Fed “hawk” Jeffrey Lacker said the sales figures didn’t change the fundamental outlook and UBS said a “steady pick-up in the prices of other goods and services suggested inflation was set to rise”.
