US retail sales fell for a second successive month in June, missing expectations and sending the dollar lower. However, the sales weakness had been flagged in advance by IHS Markit’s PMI data. Meanwhile, manufacturing output growth also remained sluggish, confirming earlier PMI signals of industrial malaise compared with earlier in the year.
The June sales and output data are the latest in a flow of disappointing official data which are now coming more into line with relatively subdued PMI survey numbers, which since April have seen indicating that economic growth may fail to rebound to any substantial degree in the second quarter.
Economists polled by Reuters had been expecting total retail sales to grow 0.1% in June, with core sales up a stronger 0.3%. However, the actual numbers came in lower, with headline sales down 0.2%, falling for a second month running. Core sales dropped 0.1% after a flat May.
The data follow the release of IHS Markit’s PMI survey data, which had shown growth of new orders for consumer goods at US manufacturers trending sharply lower in June. Having peaked at a strong 59.5 in January, the PMI consumer goods news orders index has…