The retail sales figures for October released Thursday showed the fifth straight monthly gain, but an exchange traded fund strategist spots a worrying trend in recent economic data.
U.S. retail sales climbed 0.5% last month, more than expected, thanks in part to a rise in electronics purchases. [ETF Spotlight: Retail Sector and the Holiday Shopping Season]
The retail sales data are another sign that the U.S. economy may avoid another recession as it muddles through the current soft patch, says Russ Koesterich, global chief investment strategist at ETF manager iShares.
“But a look behind the retail numbers also reveals a major risk facing the U.S. economy,” he wrote at the iShares blog.