Steady consumer spending amidst challenges

  • Retail sales remained flat in June due to lower gas prices and auto cyberattack
  • Excluding autos and gas, retail sales increased by 0.8%
  • Restaurant sales rose for the third consecutive month
  • Internet sales also showed growth due to upcoming promotions like Amazon Prime Day
  • Consumer spending remains stable despite inflation and high interest rates

U.S. retail sales were flat in June due to lower gas prices and a cyberattack on auto dealers, but most other stores showed an increase in spending, indicating a stable economy. Excluding autos and gas, retail sales actually rose by 0.8%. Restaurant sales also increased for the third month in a row. Internet sales are expected to rise again due to promotions like Amazon Prime Day. Despite lingering inflation and high interest rates, consumer spending remains steady.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the retail sales figures for June, including details on specific categories such as auto dealers, gas prices, and restaurant sales. It also discusses the potential impact of Federal Reserve interest rate cuts on consumer spending. The article presents a balanced view of the economy’s current state and future prospects.
Noise Level: 3
Noise Justification: The article provides relevant information about retail sales and the economy but contains some filler content such as references to unrelated events like the Federal Reserve’s potential interest rate cut and market reaction.
Public Companies: Amazon (AMZN), Walmart (WMT)
Key People: Ali Jeffery (CIBC Economics economist)

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Financial Relevance: Yes
Financial Markets Impacted: Retail sales, auto dealers, gas prices, oil prices, interest rates, and stock market (Dow Jones Industrial Average and S&P 500)
Financial Rating Justification: The article discusses the impact of falling gas prices, a cyberattack on auto dealers, and changes in retail sales on the economy and financial markets. It also mentions the potential for Federal Reserve to cut interest rates, which affects various sectors and stock market reactions.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the article. The main focus is on the impact of a cyberattack on auto dealers and its effect on retail sales, but it does not qualify as an extreme event.

Reported publicly: www.marketwatch.com