US: Dip in retail sales unlikely to last - ING
|James Smith, developed markets economist at ING, points out that the latest US retail sales numbers showed that the headline spending figure dipped by 0.2%, masking a fairly noticeable fall in car sales, which was more-or-less offset by greater spending at gasoline stations.
Key Quotes
“It’s worth noting that this latest decline comes after a very strong month for consumer spending in March, and more generally, we think the outlook for retail sales looks reasonably good. While wage growth has levelled off a bit since the start of the year, the tight jobs market and associated skill shortages should continue to keep the pressure on employers to lift pay faster to attract/retain talent.”
“There are a couple of headwinds to spending though. The sudden rise in fuel prices will hit real wages to some degree, while the lingering threat of tariffs on the remainder of Chinese imports could also weigh on spending if they come to pass.”
“We are expecting 2.5% overall growth in 2019, which when combined with our forecast for a gradual rise in core inflation, suggests that Fed rate cuts are not currently on the horizon.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.