US retail sales increased in June, rebounding after two straight monthly declines. The report showed that US consumers remain resilient despite financial and economic concerns. The pause in tariffs and the trade deal with China in June relieved some of those concerns. However, the past two weeks have brought more tariff threats, reigniting economic uncertainty.

• Retail sales in the US surged 0.6% higher in June, rebounding from a 0.9% decline in the previous month. June’s result also exceeded the 0.1% increase economists had expected, based on a Bloomberg survey.
• Sales increased for motor vehicles and parts, building equipment and clothing. Sales at gasoline stations were largely flat. Meanwhile, sales of furniture and electronics dropped.
• The US Department of Labor announced that initial jobless claims fell to 221,000 over the week ended July 12, its fifth straight decline.
• US consumers continue to demonstrate resiliency with the economic support of a relatively strong labour market. But the outlook could be clouded by further trade disruptions as new tariffs may be on the horizon.

US economic data appears relatively solid heading into the US Federal Reserve Board’s (Fed) interest rate announcement on July 30. The Fed has held rates steady at recent meetings as it monitors the impact of trade tensions on the US economy. For now, the US economy appears to be resilient. Generally, US economic strength is good for Canada, but with the spectre of more tariffs on the horizon, Canada’s economic outlook is uncertain. Canada continues to negotiate with the US on a trade deal while trying to enhance trade with other economies worldwide, such as the Indo-Pacific region.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.