KONTAN.CO.ID - WASHINGTON. U.S. retail sales increased less than expected in April, but the underlying trend was solid, suggesting that consumer spending got off to a strong start in the second quarter, defying expectations of a recession this year. The smaller-than-expected rebound in retail sales last month reported by the Commerce Department on Tuesday likely reflected a moderate rise in receipts at auto dealerships, which some economists said was because of lower prices. Automobile manufacturers reported a surge in unit sales in April. "Outright declines in spending will be needed in the remaining two months of the second quarter to spur a contraction in real personal consumption," said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. "This risks another delay in the long-awaited recession, likely due to ongoing revenge spending, excess savings, and sturdy income growth."
US Retail Sales Increase Moderately; Core Sales Strong
KONTAN.CO.ID - WASHINGTON. U.S. retail sales increased less than expected in April, but the underlying trend was solid, suggesting that consumer spending got off to a strong start in the second quarter, defying expectations of a recession this year. The smaller-than-expected rebound in retail sales last month reported by the Commerce Department on Tuesday likely reflected a moderate rise in receipts at auto dealerships, which some economists said was because of lower prices. Automobile manufacturers reported a surge in unit sales in April. "Outright declines in spending will be needed in the remaining two months of the second quarter to spur a contraction in real personal consumption," said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. "This risks another delay in the long-awaited recession, likely due to ongoing revenge spending, excess savings, and sturdy income growth."