Seeking Alpha
Registered investment advisor, macro, ETF investing
Profile| Send Message|
( followers)

Although today's headline reading in retail sales was inline with expectations, a look at the internal components is rather encouraging. During the month of July, ten out of the thirteen components that make up the headline number showed increases, representing the highest level since March.

In the chart below, we created a diffusion index showing the six month average of the net number of components in the retail sales report that rose on a monthly basis. As shown, even after its recent decline, the diffusion index is still at the high end of its historical range and well above the levels it dipped to last Summer.


Source: Broad Growth in Retail Sales