- Sri Lanka level T20 series with record-breaking West Indies win
- French footballer Ben Yedder on trial for sexual assault
- India foreign minister in arch-rival Pakistan for rare visit
- Restored 'Apollo Belvedere' marble back on show in the Vatican
- Lagos festival dances to Nigerian icon Fela Kuti's beat
- Italian PM hails 'courageous' Albania migrant deal
- 'Tragedy in Jabalia' as Israel army tightens siege in north Gaza
- Draft UN climate pact leaves open thorny question of money
- Two giant pandas arrive in US from China aboard 'Panda Express'
- Musiala and Upamecano return to Bayern training
- Wirtz return 'unclear' after injury on Germany duty
- Ghulam says 'wait is over' after century on Pakistan debut
- Boeing to raise up to $25 bn as strike weighs on finances
- Two giant pandas arrive in US from China
- Japan hold Australia, S. Korea and China win in World Cup qualifying
- Mbappe's golden-boy image takes a hit amid negative headlines
- Hezbollah threatens to attack targets across Israel
- Oil prices fall on easing Middle East fears
- Wales lock Jenkins to miss November Tests with 'horrible' injury lay-off
- France to play Israel in Paris and allow fans in
- Twin panda cubs to make public debut at Berlin zoo
- Scotland's Kinghorn maintains Lions 'dream' despite Toulouse clash
- Pakistan debutant Ghulam hits century to defy England in second Test
- Boeing announces intention to raise up to $25 bn
- Tuchel 'in talks with FA' over England manager's job
- Dutch rider Lavreysen targets record at world track championships
- Bangladesh suspend Hathurusingha as coach after alleged assault
- Russian Olympic chief announces surprise resignation
- Ferguson to leave Man Utd ambassador role as club cuts costs
- Turkish govt defends tax plan to fund defence industry
- Oil prices tumble on easing Middle East fears
- Eidevall quits as Arsenal Women head coach
- US, Philippines launch war games after China's Taiwan drills, ship collision
- Swedish prosecutor confirms 'rape' probe without naming Mbappe
- England dismiss Ayub but Pakistan reach 173-3 at tea in second Test
- Israel vows to put 'national interest' first in response to Iran attack
- Oil prices hit by easing Middle East fears, most Asian markets rise
- Mbappe-PSG salary row faces hearing as France captain cited in 'rape' report
- K-pop star tells South Korea lawmakers of workplace bullying
- Ex-Wallabies captain Elsom denies wrongdoing after arrest warrant
- Pakistan 79-2 at lunch in second England Test after Leach strikes
- Hopes pinned on peace across Taiwan Strait after drills
- Valencia fans leave Singapore with 'stern warning' after protest
- Falling sales cause sour grapes for iconic Portugal wine
- Belgian pathologist and literary star gives 'voice to the dead'
- Ethiopia's 'korale' recyclers turn waste into money
- Italy row, AI in focus at world's biggest book fair
- US, Philippines launch war games a day after China's Taiwan drills
- Scotland lock Gray signs for Japan's Toyota
- Allen and Bills foil Rodgers, outlast Jets 23-20
RBGPF | 1.67% | 60.5 | $ | |
RYCEF | -0.57% | 6.99 | $ | |
SCS | 1.14% | 13.13 | $ | |
CMSC | 0.6% | 24.84 | $ | |
NGG | 0.68% | 67.35 | $ | |
GSK | -0.01% | 39.125 | $ | |
RIO | -1.94% | 66.41 | $ | |
RELX | 1.82% | 48.26 | $ | |
BTI | -0.01% | 35.445 | $ | |
CMSD | 0.68% | 25.151 | $ | |
VOD | -0.05% | 9.675 | $ | |
BCE | 2.7% | 33.465 | $ | |
BP | -3.77% | 30.829 | $ | |
JRI | 0.1% | 13.1 | $ | |
AZN | -0.66% | 77.585 | $ | |
BCC | 0.09% | 143.11 | $ |
US retail sales higher than expected in September: govt
Retail sales in the United States came in stronger than expected in September according to government data released Tuesday, supported partly by sales in the auto sector and at gasoline stations.
Sales rose 0.7 percent last month in the world's biggest economy, reaching $704.9 billion, while the pace of growth in August was revised upwards to 0.8 percent, the Commerce Department said on Tuesday.
While the latest figure marks a slight slowdown, it remains significantly higher than analysts expected.
US consumption has shown resilience despite higher interest rates, after the central bank embarked on an aggressive campaign to lower inflation last year.
The Federal Reserve lifted the benchmark lending rate rapidly, increasing the cost of borrowing and lowering demand by making it pricier to get funds for big-ticket purchases or business expansion.
In September, sales at motor vehicle dealers rose 1.1 percent from August, while sales at gas stations picked up 0.9 percent.
- Job market support -
While the US economy has remained strong in the face of elevated interest rates, analysts warn it is a matter of time before tighter credit conditions bite.
For now, a strong job market is a "key underpinning of the consumer," said economist Oren Klachkin at Nationwide.
"As long as the job market stays solid and wages continue to rise, we should in turn expect retail sales to be pretty strong, to post positive month-on-month gain," he told AFP.
But he anticipates that the economy will eventually cool, with the Fed holding interest rates at a higher level for a longer period.
Kieran Clancy, senior US economist at Pantheon Macroeconomics said the strength in third-quarter consumption spending "is hard to square" with the jump in student loan repayments and the ongoing depletion of excess savings accumulated during Covid.
Clancy added that most effects from the Fed's rate hikes have "yet to be fully felt by the consumer sector."
With September retail sales much stronger than expected and earlier months' figures revised up, consumption will likely lift GDP in the third quarter, said economist Rubeela Farooqi of High Frequency Economics.
Beside the still-strong labor market, disposable incomes and a gradual slowdown in inflation are supporting spending and growth, she added.
But an acceleration in household spending could cause inflation to remain elevated, raising the chance of another Fed rate hike this year, she said.
P.Costa--AMWN