U.S. Retail Sales and Industrial Indicators show Firm Growth

Retail sales in August increased 0.2% from previous month in U.S. a little lower than expected 0.3%. Excluding autos sales increased 0.1% lower than expectation of 0.2% as well.

Although the data is slightly lower than market expectation or consensus, the sales growth does not seem low. Under subdued price condition, nominal sales growth is also under the downward pressure. And especially, market participants who seemed to expect U.S. economic turmoil were likely to predict downward revision of July's number, very high, 0.7%. But, there were little revision in July and June data. This points U.S. economic recovery is going on.

Retail Spending (%)	Aug	Jul	Jun	Aug Y/Y	2014	2013	2012
Total Retail Sales & Food Services	0.2	0.7	-0.0	1.6	3.9	3.7	5.0
Excluding Autos	0.1	0.6	0.4	0.4	3.1	2.7	4.1
Non-Auto Less Gasoline, Building Supplies & Food Services	0.4	0.6	0.3	2.8	3.3	2.7	3.6
Retail Sales	0.1	0.8	-0.1	1.0	3.7	3.8	4.9
Motor Vehicle & Parts	0.7	1.3	-1.6	5.8	7.5	8.3	9.0
Retail Less Autos	-0.0	0.6	0.4	-0.5	2.6	2.6	3.9
Gasoline Stations	-1.8	-0.6	1.2	-17.1	-2.7	-0.7	4.3
Food Service & Drinking Places Sales	0.7	0.3	0.3	6.1	6.2	3.4	5.9

Industrial data in U.S. was somewhat sluggish. But this aspect was expected with the burden of inventory ratio against sales during recent months. Decline in inventories is not bad news.

Capacity utilization rate in August dropped to 77.6% from previous month's 78.0% and lower than market expectation, while higher than 77.4% recorded in June.