Unexpected Higher Retail Sales, Jobless Claims Add To Volatility

Unexpected Higher Retail Sales, Jobless Claims Add To Volatility

U. S. retail sales unexpectedly rose in August, up 0. 7%. Economists were expecting a decrease of 0. 7% as the Delta variant was forecasted to keep people away from brick-and-mortar establishments like restaurants. They also pointed to continuing supply chain issues leading to product shortages. Retail sales include spending on meals, cars, clothes and computers. Together, they are a huge part of consumer spending and economic demand in the U. S. If, or some believe when, the Delta variant crests, economists are expecting a recovery of retail sales just in time for the holiday shopping season when some consumers will be armed with savings and pent-up demand. But that rosy scenario has some caveats, like an increase in vaccination rates, an ease of product shortages, and the avoidance of another major and contagious Covid-19 variant. Jobless claims also provided a little surprise this morning. Initial unemployment claims came in at 332, 000 versus an expected 322, 000 for the week ended September 11. The pandemic-era low number is sowing seeds of optimism that the US Labor Market is experiencing sustained improvement. In Asia, stocks ended mostly lower, led by a selloff in Chinese property stocks. The sector is now