No change in April after record increase – Wells Fargo

Data released on Friday showed that retail sales were unchanged in April. The result was below the expectations of the consensus, which anticipated a modest gain; although the upward revision of the March figures considerably softens the blow, they explained analysts of Wells Fargo.

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“Retail sales were unchanged in April after upward revisions lifted the March figures to the second-highest monthly gain on record. Increased spending on cars and restaurants offset weakness in other areas. “

“Intermittent dynamics with expenses and large cash windfalls have injected new volatility into the retail sales figures. It is considered, for example, that in the 10-year period ending in December 2019, the average monthly change in retail sales was only 0.3% with a maximum of + 2.2% and a minimum of -2.0%. Between last year’s lockdowns and a sudden spike in spending on goods, this year’s stimulus controls, and late-winter storms, it’s no wonder why retailers are struggling to manage inventory and anticipate demand. ” .

“Unlike last summer, when most people were stuck at home, almost everyone is ready to go out and go somewhere this summer. There are signs everywhere and getting your hands on a vehicle is proving to be a difficult task. “

“Our outlook for consumer spending is not influenced in one way or another by today’s report. In fact, a headline shift in the other direction wouldn’t have flustered us either because nothing consumers could have done in April is all that stuff for the true driver of our forecast, which is the next surge in consumer spending. linked to the reopening of the services sector. “