09/09/2024
Written by: Ian Morley
Summary:
This morning’s UK GDP figures for Q2 showed a slight underperformance, with growth at 0.6%, just under the anticipated 0.7%. Notably, economic activity stagnated in June.
In contrast, yesterday’s UK inflation data revealed a marginally weaker outcome than expected. Despite this, the headline inflation rate still edged up to 2.2%—its first increase this year.
Across the Atlantic, the US saw a slight dip in its headline inflation rate, decreasing by 0.1% from the previous figure. Traders are now eagerly awaiting today’s Retail Sales data, which will offer insight into US consumer confidence.
Our Perspective:
Today’s market attention is likely to pivot from inflation concerns to the strength of US consumer sentiment, with the July Retail Sales figures set to be released at 1:30 pm. Market expectations suggest a 0.3% rise in the headline figure.
Before the Retail Sales data, Wal-Mart, the world’s largest retailer, will disclose its quarterly results and outlook. The impact of higher interest rates is becoming evident, with major companies like McDonald’s and Home Depot already reporting signs of waning consumer spending.