US: Retail sales likely to rebound nicely in September – RBC CM

Research Team at RBC Capital Markets, suggests that following two very weak months, RBC expects US retail sales will rebound nicely in September.

Key Quotes

“Headline sales should be boosted by very firm vehicle sales and rising gasoline prices. Beneath the surface, we look for control retail sales to post a 0.4% advance, after a dismal -0.1% decline last month.

Consumer confidence continues to print near cycle highs and income growth remains supportive of a healthy consumer backdrop. This retail sales result will round out the quarter and is consistent with real personal consumption growth of just under 3% in Q3.”