U.S. retail sales likely dropped in April

In March, U.S. retail sales had reversed a three-month string of declines in March and rose 0.6 percent. Most of the rebound was stimulated by solid motor vehicles & parts dealers’ sales, which rose 2 percent for the month. Stripping autos, retail sales rose 0.2 percent, with modest rose in health & personal care, nonstore retailer, and furniture & home furnishings sales. In the meantime, the softest sectors of the report were sporting goods, hobby, book & music and building material & garden equipment sales, both of which fell for the month.

Control group sales, which are used to calculate GDP, were solid at 0.4 percent in March and aided in strengthening first quarter consumer spending, which expanded at an annualized rate of 1.1 percent. In spite of rising inflation and a slightly subdued start to the year, a bounce-back is expected in the second quarter, noted Wells Fargo in a research report. Retail sales are expected to have fallen in April on weaker auto sales.

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