U.S. business inventories increased a bit more than expected in August even as sales surged, suggesting inventory investment could provide a lift to economic growth in the third quarter.
U.S. retail sales have seen an unexpected rise of 0.7% in September, due to high demand at auto dealerships, online stores, and increasing gasoline prices. This increase occurred during a period typically considered off-peak, falling between the bustling back-to-school and holiday-shopping seasons.
Production at U.S. factories increased more than expected in September despite strikes in the automobile industry curbing motor vehicle output, further evidence that the economy exited the third quarter with momentum.
Asian shares stuttered on Wednesday as a blast at a Gaza hospital dealt a blow to hopes for containing the crisis, while bonds nursed heavy losses as strong US retail data argued for a punishingly long stretch of high rates.
Oil prices rose sharply in Asian trade on Wednesday after a deadly blast at a Gaza hospital appeared to have stymied a U.S. diplomatic effort in the Israel-Hamas war, while industry data showed that U.S. inventories shrank more than expected last week.
The dollar stood its ground on Wednesday, though it struggled for further headway despite strong U.S. retail sales data, as traders turned their attention to looming Chinese growth figures and the escalating violence in the Middle East.