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US retail sales rise less than forecasted in September; Japanese manufacturer’s confidence higher in October

Oct 16 • Morning Roll Call • 125 Views • No Comments

On Monday we have seen a less than expected rise in US retail sales with the reading of 0.1% in September, while the forecasted was a gain of 0.7%. According to the report, the American citizens spent lees in restaurants, gas stations and grocery shops. In addition, the results may have been affected by the hurricane Florence. The US retails sales hardly rose in the previous month, where the bounce in motor vehicle purchases was compensated by the highest drop in spending at bars and restaurants in the previous two years.

The data from August has been revised by the Commerce Department and the core retail sales shown unchanged reading, as opposed to the previously reported 0.1% gain. In September the auto sales rose by 0.8% after a 0.5% decline in August, however the spending on gasoline stations dropped by 0.8% seen as reflecting on the moderation of petrol prices.

From Japan we had positive news regarding the manufacturer’s confidence, which rose this month as opposed to September, however it is expected to remain flat in the following 3 months. According to Reuters, the monthly poll tracking the BOJ tankan quarterly survey, found that the non-manufacturers confidence is dropping to the lowest in two years, where consumers and firms are affected by the natural disasters.

The managers who were questioned named the global trade tensions, rising raw material prices and the difficulties faced to pass on costs due to weak private consumption were the main factor of influence on the sentiment. The future uncertainty of the consequences that the trade war may have and the possibility of the US imposing heavy tariffs against imports from Japan are bringing unease to the firms.

In addition, the IMF have cut in October Japans’ economic growth forecast for this year due to the increased risk that Japan is facing regarding the uncertainty over global trade and the impact of a sales tax hike panned for 2019.

 

ECONOMIC CALENDAR EVENTS FOR OCTOBER 16th

NZD CPI q/q
AUD Monetary Policy Meeting Minutes
CNY CPI y/y
CNY PPI y/y
EUR German Import Prices m/m
EUR Trade Balance
EUR ZEW Economic Sentiment
EUR German ZEW Economic Sentiment
GBP Average Earnings Index 3m/y
GBP Unemployment Rate
CAD Foreign Securities Purchases
USD JOLTS Job Openings
USD Treasury Currency Report

 

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