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July: US retailers report flat sales

July: US retailers report flat sales

In the month of July
Retailers in the US are seeing stagnant sales

US retailers reported flat sales in July. Revenues were unchanged from the previous month, the Commerce Department reported on Wednesday. Economists polled by Reuters had expected a smaller increase of 0.1 percent. Growth was still 0.8 percent in June, revised down.

According to Helaba expert Ulrich Wortberg, the current figures probably do not contribute to high economic optimism. “Regardless, the US Federal Reserve will stick to the target of further increases in the key interest rate range,” he added.

High inflation robs American citizens of their purchasing power. However, the inflation rate eased to 8.5 percent in July from 9.1 percent in June. The Federal Reserve battled widespread inflation with unusually large rate hikes of 0.75 percentage points over the summer. She wants to follow up next month. The key interest rate is currently in the range of 2.25 to 2.50 percent. In financial markets, the central bank is expected to take a less aggressive stance in September, which could raise interest rates by half a percentage point. Investors await information on the central bank’s further course from the release of minutes from its July interest rate meeting, scheduled for later in the evening (20:00 CEST).