Weak retail sales pull Wall Street lower

Wall Street closed lower Friday after U.S. retail sales fell 0.6% in July, the first decline in nine months, raising concerns that consumer spending is slowing.

Economists surveyed by Reuters had expected retail sales, which are not adjusted for inflation, to rise 0.1%. The weaker result prompted economists to downgrade third-quarter economic growth forecasts.

Recent data reinforced expectations that the Federal Reserve will leave interest rates unchanged at its September meeting. Traders priced in a 67% chance of no change and a 33% chance of a rate hike, according to CME’s FedWatch.

The University of Michigan’s preliminary consumer sentiment index also missed expectations, coming in at 51 in August against a forecast of 54.5.

Read the full story at capitalbrief.com.