–Components: Autos +0.5%, Bldg Mats +6.9%, Gas +0.5%
By Joseph Plocek
WASHINGTON (MNI) – The U.S. April retail sales report was
consistent with a growing economy.
April retail sales printed +0.4%, ex auto +0.4%, and ex auto and
gas +0.4%, all showing strength. These start Q2 on a moderate growth
path, as sales were perhaps hurt by Easter’s timing.
February-March sales were revised higher, with March now showing a
robust +2.1%. These all suggest continuing economic growth and are
consistent with perhaps a +3% quarterly growth path.
Components for April included weakness in furniture at -1.2%,
electronics -0.4%, food -0.5%, clothing -1.0%, and sporting goods -1.9%.
These could have been related to the early Easter.
Motor vehicles and parts sales were +0.5%, following +6.7% in
March. The domestic auto industry appears to have turned a corner back
to strong sales, helped in part by continuing sales incentives.
Building materials printed +6.9% in a second good gain, and rises
in healthcare (+0.9%), gasoline (+0.5%), and non-store sales (+0.2%)
added to the overall retailer gain.
Looking ahead, sales should continue to grow as payrolls and
incomes gain.
**Market News International Washington Bureau: (202)371-2121**
[TOPICS: MAUDS$,M$U$$$,MT$$$$,MAUDR$]
