Retail sales better, NY mfr'g softer, import prices hotter

Core retail sales in July rose 1% m/o/m, twice the estimate and vs a .5% gain in June (revised down by one tenth) and a .6% rise in May (revised up by 3 tenths). Auto’s, not included in the core, fell .3% m/o/m after the lift seen in the prior few months as consumers have more choices on the lots. They are up 6.9% y/o/y. Building materials, also not included in the core, rose .7% m/o/m after falling by 1.5% in June but still down 3.5% y/o/y and matches the expected comp decline that Home Depot is guiding to. Spending on essentials were strong with food/beverage sales up .8% m/o/m and health/personal care higher by .7% vs June.

Core strength was seen in online retailing where sales were up 1.9% m/o/m and almost 12% y/o/y. Spending at restaurant/bars jumped 1.4% m/o/m and 10.6% y/o/y. Sales for clothing were up 1% after no change in June as back to school spending begins again and they are up .9% y/o/y. Sporting goods sales were higher by 1.5% m/o/m and helped contribute to the headline beat. Department store sales were up .9% m/o/m but still down 3.8% y/o/y. Spending on furniture and electronics though fell notable with drops of 1.8% and 1.3% respectively m/o/m and both are down 7.6% and 3.5% y/o/y for each.