US: Retail sales were softer than expected in April - Natixis

Thomas Julien, Research Analyst at Natixis, notes that the US retail sales rose less than expected in April, gaining 0.4% MoM.

Key Quotes

“Car sales recovered slightly with also a modest increase in gasoline sales, but the control group of retail sales (the portion the BEA is using to estimate GDP) surprised on the downside, increasing by only 0.2% MoM. However, past month data were revised upward. All in all, the trend in retail sales remains good and we maintain a positive outlook for consumption.”

Retail sales rose by 0.4% MoM in April, below consensus expectations (+0.6% MoM) and ours (+0.7% MoM). As expected car sales recovered after 3 months of decline. Gasoline sales were up, but slightly less than expected given the rise in prices during the period.”

“The control group sales surprised on the downside, rising by a modest 0.2% after being revised upward in March to 0.7%. Everything else being equals, this report is positive for Q1 growth (with a potential for upward revision for consumption) and slightly less positive for Q2.”

“In short, report is slightly softer than expected but the trend in retail sales remains stable. Our view is that employment gains as well as accelerating wages will support households’ disposable income in the near term, which should translate into more consumption. However, we do not expect car sales to recover. On the contrary, we believe sales will keep decelerating as the massive catch up effect that supported sales in 2016 should start fading.” 

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.

Feed news

Latest Forex News

Editors’ Picks

AUD/USD: On the back foot below 0.6600 amid coronavirus fears

AUD/USD declines to 0.6592 during the early Monday morning in Asia. In doing so, the pair remains on the back foot while extending losses after the gap-down to 0.6600 portrayed at the start of this week’s trading session.


USD/JPY extends losses below 111.50 as coronavirus spreads outside China

USD/JPY declines to 111.45, with the intra-day low of 111.28, amid the initial Asian session on Monday. That said, the pair stays under pressure as coronavirus pushes traders towards risk-safety whereas the pullback in the USD.


What you need to know for the open: Coronavirus risk-off themes rule the waves

The coronavirus remains front and centre of the theme for forex at the start of this week. Friday's close leaves a consolidative tone for today's open, if not a risk-off bias which could continue to fuel a bid into the greenback.

Read more

Gold pulls back from fresh seven-year high to sub-$1670 area

Gold prices rallied to $1,681.25, the highest since February 2013, during early Monday. The yellow metal recently benefited from the rise in the coronavirus cases outside China while no respite from the contagion inside the dragon nation earlier fuelled the safe-haven.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info