Retail Sales Turn Positive Amid a Week of Positive Data

Wells Fargo Research Team Wells Fargo

Weekly Economic & Financial Commentary

U.S. Review

Retail Sales Turn Positive Amid a Week of Positive Data

Retail sales increased 0.6 percent in March. Strong control group sales this month should limit the fallout from a weak consumer in first quarter GDP.
In March, industrial production expanded 0.5 percent, bringing a 4.5 percent annualized increase for the quarter.
Inventories increased 0.6 percent in February. Recent gains should provide a substantial boost to GDP in the first quarter.
Housing starts rose 1.9 percent in March. Upward revisions to prior data painted a much rosier picture of residential construction over the past few months.

Global Review

IMF Data Affirms Global Upswing in 2017

Data released this week showed global GDP grew 3.8 percent in 2017, the fastest pace since 2011. While global demand clearly firmed in 2017, we look for the global economy to grow more in line with its long-run average over the next two years.
China’s Q1 GDP growth held steady at 6.8 percent year over year, although growth in investment spending and industrial production slowed in the quarter.
The Bank of Canada left its policy rate unchanged at its meeting this week in light of weaker Q1 GDP growth and its generally cautious approach to policy tightening. In Europe, March inflation data surprised to the downside.

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