- US trade chief defends tariff hikes when paired with investment
- EU court blocks French ban on vegetable 'steak' labelling
- Meta AI turns pictures into videos with sound
- US dockworkers return to ports after three-day strike
- DR Congo to begin mpox vaccination campaign Saturday in east
- Meta must limit data use for targeted ads: EU court
- Oil extends gains, jobs report lifts Wall Street
- US hiring soars past expectations in sign of resilient market
- As EU targets Chinese cars, European rivals sputter
- Top EU court finds against FIFA in key transfer market ruling
- Oil extends gains, Hong Kong stocks resume rally
- 'A man provides': Ukrainian miners send families away as Russia advances
- EU states greenlight extra tariffs on EVs from China
- Hong Kong stocks resume rally, oil dips after Middle East-fuelled surge
- Crude stable after Israel-Iran surge, Hong Kong stocks resume gains
- Hera spacecraft to probe asteroid deflected by defence test
- US dockworkers to head back to work after tentative deal
- After Helene's destruction, North Carolina starts to rebuild
- Dockers end three-day strike at Montreal port
- What next for OpenAI after $157 billion bonanza?
- Israel-Hamas war causes 86-percent dive in Gaza GDP: IMF
- Milan's Morata moves house after Inter-fan town mayor 'violates' privacy
- 'Devastating' storm hits Augusta National but Masters will go on
- Relief in Brazil, Asia over delay to EU deforestation rules
- Oil prices jump, stocks fall on Middle East tensions
- Biden says 'discussing' possible Israeli strikes on Iran oil facilities
- Oil prices rise, stocks fall on Middle East tensions
- Oil rallies, stocks mostly retreat on Middle East tensions
- Phasing out teen smoking could save 1.2 mn lives: study
- 'Welcome relief': Asia producers hail EU deforestation law delay
- Japan PM slated to announce plans for 'happiness index'
- Turkish inflation falls less than expected in September at 49.4%
- Easing inflation lifts profit at UK supermarket Tesco
- Skiing calls on UN climate science to combat melting future
- China wine industry looks to breed climate resilience
- Tokyo rallies on weak yen, Hong Kong drops after surge
- Dutch airline KLM unveils 'firm' cost-cutting measures
- Carpe diem: the Costa Rican women turning fish into fashion
- Senegal looks to aquaculture as fish stocks dwindle
- Will AI one day win a Nobel Prize?
- Climate change, economics muddy West's drive to curb Chinese EVs
- Argentina's Milei vetoes university budget after huge protests
- TotalEnergies plans to grow oil and gas production until 2030
- 2024 Nobels offer glimmer of hope as global crises mount
- Tokyo rallies on weak yen, Hong Kong reverses after surge
- Tunisia readies for vote as incumbent Saied eyes victory
- High childcare costs in US weigh on women's employment
- US voters seek help with crushing childcare costs
- Taiwan shuts down for second day as Typhoon Krathon to land
- Supercharged storms: how climate change amplifies cyclones
US retail sales flatline in July as gas prices fall
US retail sales held steady in July as gas prices fell sharply, but the new data released Wednesday showed consumers are still spending, keeping the pressure on the Federal Reserve to continue its aggressive interest rate hikes.
Americans flush with savings have been a key driver of the US pandemic recovery, and the Fed is keeping a careful eye on economic data as it battles to quash red-hot inflation without tipping the world's largest economy into recession.
While the headline data of the closely-watched report flatlined at $682.8 billion, rather than rise slightly as economists had expected, sales increased 0.7 percent when gasoline and motor vehicles are excluded from the calculation, the Commerce Department said.
"Despite the flat headline reading, the core retail sales figures in July show the consumer has staying power," Kathy Bostjancic of Oxford Economics said.
"Today's solid report keeps the Fed in an aggressive policy tightening mode."
The central bank has raised the benchmark borrowing rate four times this year, including two massive three-quarter point increases in June and July after US annual inflation spiked to 9.1 percent in June.
- Price relief -
The inflation rate slowed in July to 8.5 percent, but policymakers have made it clear in recent comments that they are not done with their efforts to cool the economy.
Still, Bostjancic said the Fed might dial back the pace of increases.
"With inflation, commodity prices, and inflation expectations easing, the Fed might decide to scale back the rate hike to 50bps (basis points)," she said in an analysis.
The Fed's next policy meeting is in late September.
US gas prices at the pump soared in the wake of the Russian invasion of Ukraine in late February, but in recent weeks have been trending down and have fallen by more than $1 a gallon after hitting an all-time high over $5 in mid-June, squeezing family budgets.
While spending on automobiles fell 1.7 percent and gasoline stations dropped 1.8 percent, Americans ramped up spending on furniture, food, electronics and at online stores.
Sales of building materials and garden supplies jumped 1.5 percent, but at clothing and department stores they fell.
The data are seasonally adjusted but do not take into account changes in prices, so as costs rise a shopping dollar does not stretch as far.
Still, the report shows the stockpile of savings is helping consumers deal with the higher prices, and bodes well for economic growth, said Ian Shepherdson of Pantheon Macroeconomics.
"The big picture here is favourable," he said. "If you’re looking for recession, you won’t find it here."
M.García--CPN