US retail sales data for December was released at 1:30 pm GMT. Report turned out to be weaker than expected and caused some moves on the markets. Highlights of the report:
• Headline: .-1.1% MoM vs -0.8% MoM expected (-0.6% MoM previous - upwardly revised to -1.0%)
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appSales at gasoline stations recorded the biggest decrease (-4.6%), followed by furniture stores (-2.5%), motor vehicle dealers (-1.2%), electronics and appliances stores (-1.1%), miscellaneous (-1.1%) and nonstore retailers (-1.1%). In contrast, sales were up 0.3% in building materials and garden equipment stores (0.3%) and sporting goods, musical instruments and book sellers (0.1%). Sales at food and beverage stores were flat. Excluding sales at gasoline stations, retail sales were down 0.8%, in another sign of a weaker-than-expected holiday shopping as consumer spending slows amid high inflation and interest rates.
• Ex-autos: -1.1% MoM vs -0.4% MoM expected (-0.2% MoM previous)
Fresh retail sales report showed that 10 of 13 retail categories fell last month. Source: Bloomberg via ZeroHedge
Source: Census
Simultaneously PPI data was released.
- Producer Prices in the US decreased to 6.2%YoY in December, lowest since March 2021, from 7.4% in the previous month, well below market expectations of 6.8%.
- Core PPI decreased to 5.5% YoY in December, lowest since May 2021, following a 6.2% increase in November and below market expectations of a 5.7%. However it rose 0.15 on MoM basis.
PPI fell sharply in December. Source: Bloomberg via ZeroHedge
Retail sales fell sharply for the second month in a row, which hints that customers are suffering from rising prices while PPI inflation is slowing down, which raises hopes that Federal will slow its aggressive tightening in the near future.
EURUSD pair is moving towards resistance at 1.0870. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
