Daily update
Daily update
- US data once again reminded investors of the wisdom of never underestimating the hedonism of the US consumer. September retail sales were strong (the data do include the effect of inflation). Consumers are often disbelieving of the data, but the value of US retail sales are up over 25% from the start of 2021 while goods inflation is up a little more than 17% over the same period. That suggests a rising living standard, at least when measured by material possessions.
- The picture in China is more complicated. There were several data items today; and if one believes the official numbers, economic growth slowed a little during the third quarter. Official retail sales were stronger (as with the US, these figures include the effects of inflation). There was a spike in sales of home appliances, but food prices may have been more important in raising the value of retail sales.
- UK retail sales lie ahead of us. These numbers do not include inflation, and the volume of goods sold suggest a solid growth in consumption by UK households. A growing population, being paid more money, provides a basis for this growth.
- Japan’s September consumer price inflation slowed with lower energy prices. Excluding energy, inflation rates were more stable.