Upside surprise in retail sales/Import prices do too

Core retail sales saw a big upside surprise in June with a .9% m/o/m gain vs the forecast of up .2%. That comes after a .4% rise in May that was left unrevised. They are higher by 4.1% y/o/y. Auto sales though fell 2% m/o/m and are down 4.8% y/o/y. Building materials rebounded by 1.4% after a .7% drop in May and are still down 5.6% y/o/y. Both categories we know are very interest rate sensitive. Because of lower gas prices, the sales at gasoline stations fell 3% m/o/m and by 2.1% y/o/y.

Elsewhere, sales of furniture, electronics, and clothing all rose as they did at department stores, online retailers (particularly strong with a 1.9% m/o/m and 4.8% y/o/y gain) and restaurant/bars. Sporting goods sales were little changed from the prior month but down 5.2% y/o/y. Sales for health/personal care products were up .9% m/o/m but little changed for food/beverages.