US: Retail sales expands surprisingly at a stronger pace of 0.6% vs. expectations of 0.2%

• In August, consumer spending grew at a healthy pace of 0.7%.

• Initial Jobless Claims remained higher than prior week figures after declining straight for five weeks.

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The US Bureau of Labor Statistics reported on Thursday that the Producer Price Index (PPI) for final demand in the US rose 0.7% on a monthly basis from expectations and July’s print of 0.4%. Annualized headline PPI accelerated to 1.6% vs. estimates of 1.2% and the former reading of 0.8%.

The annual Core PPI decelerated to 2.2%, as expected by market participants vs. July’s figure of 2.4%.

Retail Sales in the US outperformed expectations of 0.2% and July’s reading of 0.5%, landed at 0.6% on a monthly basis in July, the data published by US Census Bureau.

Retail Sales Ex-Autos rose 0.6% in the same period, compared to analysts' estimate of 0.4%, while Retail Sales Control Group increased 0.1%,.

The US Department of Labor showed that individuals claiming jobless benefits for the first time rose by 220K while investors anticipated higher jobless claims at 225K. In the previous week, jobless benefits were recorded at 216K. Jobless claims remained higher than prior week figures after declining straight for five weeks.