US Consumer Spending Robust Amid Trade War

RAPAPORT... US retail sales increased in July, as consumer confidence remained strong despite fears over the escalating trade war. Total purchases- excluding automobiles, gasoline andrestaurants - rose 0.9% compared with June sales and 5.6% year on year,according to data the National Retail Federation (NRF) reported, citing the USCensus Bureau. Online and other non-store sales climbed 19% year on year, the NRFnoted. "July's strong results are consistent with a confidentconsumer," NRF chief economist Jack Kleinhenz said last week. "Households arein good shape with spending and that should continue as long as the labormarket remains healthy." However, the numbers reflect the period before US PresidentDonald Trump's implementation of the most recent set of tariffs. While sometaxes on consumer goods imported from China have been delayed until December15, it was announced earlier this month that levies on other items would gointo effect September 1. "It's important to remember that today's data is lookingbackward at what was happening a month ago," Kleinhenz explained. "The impactof volatile financial markets and increased trade tensions in recent weeks mayput a wind of caution in consumer spending as we move forward in 2019." Image: A woman paying for purchases at a store. (Shutterstock)