Retail sales were below expectations
Retail sales declined 0.3% MoM while “core control” (ex-autos, building materials and gasoline) sales slipped 0.1% in October. The downward surprise owed to a sharp drop in sales at non-store retailers and decline in electronic and furniture sales. We suspect part of the weakness can be attributed to Hurricane Sandy. Even assuming a payback over coming months, today’s report means a weak start to Q4 after a solid Q3 gain (we are tracking just above 3.0% for Q3 GDP). This leaves us comfortable with our forecast of 1.0% GDP growth in Q4.
Read the full report here.