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Don't Write Off Consumer After Macy's Miss, Retail Sales Surprise


The consumer remains healthy despite the weaker than expected July retail sales report due to improved employment and lower oil prices, said Dr. Christopher Probyn, Chief Economist at State Street Global Advisors. Probyn said lower oil prices are the equivalent of an indirect tax cut. He added that the job market is tightening, but there is still slack which is why wage inflation will be delayed until next year. Probyn said Macy's weaker than expected Q2 results are not a reflection of overall consumer spending, nor are they an indication that corporate profits have peaked.