- Retail sales were unchanged in April and stripping out autos, gasoline and building materials, control group sales actually fell slightly (1).
- Last year, when the winter was also unseasonably severe, control group sales quickly reverted back into line with the earlier upward trend in the spring (2).
- There is little evidence of that happening this year, however, which is a major concern. Light vehicle sales were also a bit softer in April although, driven by the slump in gasoline prices, the increasing proportion of higher-price light truck sales is encouraging (3).
- More generally, the surge in real incomes around the turn of the year, linked to the earlier sharp declines in energy prices, still hasn’t been reflected at all in real consumption (4).
- The saving rate remains above last year’s level (5).
- Finally, consumer confidence has weakened, presumably in response to the very recent rebound in gasoline prices. Nevertheless, it remains at a level.
The material has been provided by InstaForex Company – www.instaforex.com