The week is starting off with a bang. At 8:30AM ET, we’ll get the April reading of U.S. retail sales.
Economists estimate sales fell by 0.3%, largely due to falling gas prices.
Excluding autos and gas, sales are estimated to have climbed bty 0.3%.
“Retail sales are a key metric of consumer spending, and they are expected to be soft in April,” said Deutsche Bank’s Joe LaVorgna. “The headline figure will be dampened by lower unit motor vehicle sales—they totaled just a 14.9 million unit SAAR last month compared to 15.2 million previously. At the same time, a continuation of unseasonably cool weather no doubt weighed on seasonally sensitive purchases, particularly apparel. Additionally, declining gasoline prices will likely exert some downward pressure on retail sales, although longer-term, declining gasoline prices are highly supportive of household cash flow.”