US: Retail sales to grow 1.7 percent in September – Wells Fargo

Analysts at Wells Fargo expect US retail sales to grow 1.7 percent in September following a 0.2 percent contraction August, month over month.

Key Quotes

“August’s contraction can largely be traced to Hurricane Harvey’s impact, with most store categories showing steep declines. Auto sales experienced the sharpest drop with sales of motor vehicles and parts declining 1.6 percent. The decline in auto sales eclipsed the boost from the 2.5 percent rise at gas stations.”

“For September, we expect building supply stores to have much stronger sales as Houston and the entire state of Florida rebuild and recover from major back-to-back storms. The data in September’s release are likely to contain Harvey-related noise, which will make gauging the actual strength of the consumer more difficult.”