US retail sales unexpectedly rose in August after declining a month earlier, as the underlying picture of spending proved more mixed. The value of overall retail purchases increased 0.3% last month after a downwardly revised 0.4% drop in July, Commerce Department data showed Thursday. Excluding gasoline, retail sales were up 0.8%. The figures aren’t adjusted for inflation. The median estimate in a Bloomberg survey of economists called for a 0.1% drop in retail sales. Eight of 13 retail categories grew last month, according to the report, including a surge in sales at auto dealers. Purchases at furniture stores, ... (full story)

While consensus expected a 0.1% drop in headline retail sales in August, BofA was more optimistic (due to inflation - remember retail sales data is 'notional' not 'real')... {table} BofA was correct on the headline retail sales print - which rose 0.3% MoM - but we note that July was revised down to a 0.4% drop (from unchanged initial print) But core (Ex-Autos) tumbled 0.3% MoM (against expectations of unch) and Ex-Autos and Gas also disappointed (+0.3% MoM vs +0.5% MoM exp)... Once again, all these numbers need to be adjusted for inflation - which surprised to the upside in August - and that suggests demand pressures ... (full story)