Top tier data will be a highlight
Never underestimate the strength of the US consumer.
Rising interest rates have raised some questions about spending but with the economy in a solid spot, Americans will be spending money.
The consensus is for a 0.7% m/m rise after a disappointing 0.1% increase in August. The control group -- which excludes autos, gas and building supplies -- is forecast to rise 0.4%.
Economists at RBC look for a small beat: "Chain-store sales have broken higher in recent weeks and were running at about a 6% y/y clip on the month. Meanwhile, the job market has shown little sign of weakening, with jobless claims continuing to register all-time lows even in the face of Hurricane Florence. Unemployment ticked down to a fresh cycle low of 3.7%. Stronger vehicle sales should support headline retail growth of about 0.8% m/m while the aforementioned fundamentals suggest a nice rebound in control retail sales (ex. autos, building materials, gasoline) of about 0.5%"
