US retail sales preview: Auto sales to boost headline growth - Wells Fargo

Tomorrow in the US, the retail sales report will be released. Analysts from Wells Fargo, expect a rise of 0.5% in retail sales in October, that is below the 0.6% of market consensus.

Key Quotes: 

“Retail sales rose 0.6 percent in September, driven by a strong recovery in motor vehicle & parts and gasoline station sales. Over the past year, non-store retailers, building materials and food service & drinking places have experienced some of the strongest growth.”

“In the short-term, we expect retail sales to rise 0.5 percent in October. Although consumer confidence pulled back a bit in October after the cycle-high surge in September, it remains consistent with a decent pace of consumer spending. In addition, auto sales were robust in October, which should provide a boost to headline growth.”