US Economic Data Keep Coming In Stronger and Defying Forecasts

US retail sales exceeded all forecasts and industrial production strengthened last month, fresh evidence of a resilient American consumer whose spending is helping stabilize manufacturing.

Sales, unadjusted for inflation, increased 0.7% after upwardly revised advances in the prior two months, according to the Commerce Department. So-called control group sales — which are used to calculate spending on merchandise in the gross domestic product report — rose a better-than-expected 0.6%.

Robust consumer demand, in the aftermath of September data showing stubborn inflation and surging job growth, risks prompting the Federal Reserve to raise interest rates again. The reports prompted a slew of economists, from Goldman Sachs Group Inc. to JPMorgan Chase & Co. and Morgan Stanley, to boost their tracking estimates for third-quarter GDP.

The 10-year Treasury yield jumped to the highest level since 2007, while the S&P 500 Index fell. Traders increased bets of a rate hike in the coming months and pushed bets on the first cut to later in 2024.

US Retail Sales Post Robust Broad Based Advance