US Retail Sales: Consumer to bounce back in Q2 - Wells Fargo

Next week, on Tuesday, retail sales data for April will be released. Analysts from Wells Fargo remain optimistic on the consumer and expect a 0.3% gain.

Key Quotes:

“Retail sales reversed a three-month string of declines in March and increased 0.6 percent. Much of the improvement was driven by strong motor vehicles & parts dealers’ sales, which increased 2.0 percent for the month. Retail sales excluding autos grew 0.2 percent, with modest strength in health & personal care, nonstore retailer, and furniture & home furnishings sales. Meanwhile, the weakest sectors of the report were sporting goods, hobby, book & music and building material & garden equipment sales, both of which declined for the month.”

“Control group sales, which are used to calculate GDP, were strong at 0.4 percent in March and helped bolster first quarter consumer spending, which grew at just a 1.1 percent annualized rate.”

“Despite rising inflation and a somewhat weak start to the year, we remain optimistic on the consumer and expect a bounce-back in Q2.”