United States: Solid Retail Sales Growth

Retail sales rose 1.3% in October after a flat September. Excluding motor vehicles and gasoline, sales grew 0.9% after an increase of 0.6% in September. Industrial production fell 0.1% in October after edging up 0.1% in September (revised from +0.4%). By the looks of October’s strong retail sales and partial manufacturing rebound, the US economy remains resilient. We expect to see sustained growth in the fourth quarter. Given current conditions, the Federal Reserve will have to continue tightening monetary policy, though perhaps at a slower pace.