US retail sales data for July showed a surprising 1% increase, exceeding expectations and easing concerns of a looming recession. Walmart, America’s largest bricks-and-mortar retailer, also reported strong sales and profits, supporting the notion that the US consumer is not in recessionary mode. Analysts are optimistic about the stability of the US consumer, with Walmart’s CEO confirming that they are not experiencing a weaker consumer overall.
The positive retail sales data has had a significant impact on stock markets in both Europe and the US, with indices rising sharply after the announcement. The US dollar also surged in value following the strong retail sales numbers. Economists and market strategists believe that the US economy is not in imminent danger of a recession, providing a boost to investor confidence.
In other economic news, the UK economy grew by 0.6% in the second quarter, despite election uncertainty affecting output in July. Starbucks announced a sign-on pay package worth up to $113m for its new CEO, Brian Niccol, one of the largest executive deals in corporate history. Danish energy group Ørsted cut the value of investments due to delays in wind projects, and Texas officials added NatWest Group to a list of financial firms reportedly boycotting energy companies.
Overall, the positive retail sales data and strong performance of Walmart have eased recession concerns in the US and provided a boost to global stock markets. Analysts and experts are optimistic about the state of the US economy and the resilience of the US consumer.
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