Retail sales in the United States exceeded expectations in July, showing the largest monthly increase in five months.
After declines in May and June, a report released Tuesday from the Commerce Department reveals that last month's retail sales increased by 0.8 percent. According to Reuters, this was well above economists' average expectations. Not only was this the largest single-month jump since February, overall sales reached their highest mark since April.
Some analysts suggest that the U.S. economy might be experiencing a slight surge, which is good news after a string of months in the late spring and early summer that yielded disappointing results. Reports have also indicated that hiring increased in July, and producer prices increased by 0.3 percent in the month, the largest single-month boost since February.
Financial professionals are hopeful that the economy will continue to trend upward, thus preventing the possibility of further quantitative easing. Gary Pollack, a fixed-income trading manager, told the news source that concerns over the unconventional action should be alleviated in light of recent news.
"Today's data, combined with the employment report, makes it harder for the Fed to do another round of quantitative easing," Pollack said.
Meanwhile, Bank of America economist Michelle Meyer told Reuters that the possibility of another round of quantitative easing is "not off the table."
Policy makers are meeting in September to discuss further actions. However, it's important to remember that regardless of what decision they come to, these actions, and the economic reports that fuel them, don't necessarily translate into market performance. Financial advisors and investors interested in related ETFs should examine the fundamentals of underlying stocks before investing.