Yields Rise Again as Resilient Consumers Spend More in August
Bond yields rose for the ninth straight day as the U.S. consumer contributed to a recent string of better-than-expected economic numbers. This morning, August retail sales rose by +0.4%, doubling the forecasted percentage gain. Although seven of the 13 major categories declined, strong auto sales, building materials and online spending more than made up the difference. In addition, the July headline sales gain was revised upward from +0.7% to +0.8%. With the first two months of the second quarter behind us, it appears as though the mighty consumer will continue to drive the overall economy in the absence of business spending. Economists are likely to revise their Q3 GDP forecasts higher today.