DAVY VIEW

US consumer spending is proving more resilient than expected, with retail sales +0.7% in August, reversing July’s 1.8% decline. UK retail sales, in contrast, declined 0.9% in August (0.5% increase expected). It is notable across both regions that the share of online sales continues to increase. The more upbeat mood in the US will face another test today with the release of the University of Michigan's consumer sentiment index.