Excluding that, retail sales rose 0.7 percent, suggesting that discretionary spending grew solidly. Businesses also continued to expand production and spending. Total industrial production increased 0.6 percent in July, standing 3.9 percent above its level a year ago.
This is of great interest to central banks, not least because we use the knowledge gained from research as an input in our monetary policy decisions. Allow me to discuss two relevant cases in which current events have stimulated research.