Consumer spending in the US was flat in July, the Commerce Department reports. The surprisingly weak month may be payback for the strong gain in June, which surged 0.8% in today’s revised data. Meanwhile, the year-over-year trend in headline retail ticked lower. Putting it all together suggests that the appetite for consumption is still positive, but the growth rate is easing. Is that a concern? Maybe, although the recent revival in the pace of job creation implies that retail sales will continue to post steady if unspectacular growth.
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Reuters reports that emerging markets are in “melt up” mode as “cash returns to global markets.” The news outlet quotes Bank of America Merrill Lynch’s global strategy team, which advises in a note to clients that “sentiment (is) getting more bullish but not yet at an extreme.” Let’s take a closer look by way of proxy funds.
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