Retail Sales Miss Expectations, But Huge Revisions To April

Retail sales were up 0.3% month-over-month in May. This was below expectations for a 0.6% rise.

This however follows after a huge upward revision to April data, which saw retail sales climb 0.5%, compared to an initial 0.1% rise.

Core retail sales (ex auto and gas) were flat, missing expectations for a 0.4% rise.

Again, April core retail sales were revised up to show a 0.3% rise, compared with an initial read that showed a 0.1% fall.

“Total May sales were boosted by a 1.4% rise in autos, signalled by the unit sales data last week, as well as a 1.1% jump in the building materials component,” Ian Shepherdson at Pantheon Macroeconomics wrote in a note to clients.

“Our measure of core sales, which excludes autos, gasoline and food, rose a modest 0.2%, but Q2 as a whole is headed for a 7%-plus annualized gain, restoring sales growth to trend after the weather-afflicted 0.3% Q1 increase.”

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