US: Consumer Spending has a good starting point for Q2 - Wells Fargo

Matías Salord FXStreet

Data released today showed that retail sales dropped 0.2% in April while March numbers were revised even higher. According to analysts at Wells Fargo, the PCE is on track for a smaller Q2 rebound.

Key Quotes:

“After a surge in March retail sales, which was among the biggest monthly increases in the past decade, April sales were a disappointment—falling 0.2%.”

“Some smoothing techniques help see through some of the recent volatility. The bottom left chart demonstrates that with a 3-month moving average, both the year-over-year and the 3-month annualized growth rate for retail sales are 3.0%.”

“The high starting point for Q2 afforded by the solid increase in March means that PCE is still on track for a decent quarter, barring a complete deterioration in May and June.”

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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