Following March's plunge in retail sales (dragging YoY to just +1.6% – recessionary territory) as Auto sales tumbled, April retail sales printed a large 1.3% surge (versus expectations of a 0.8% rise). This is the 3rd biggest MoM rise since 2010, which is odd given the utter collapse in retailers earnings and most crucially outlooks! Soaring gas prices helped but auto sales rebounded as did Amazon non-store retailers.

 

 

YMoM this was the 3rd biggest jump since 2010… it appears Retailers cutting forecasts were unaware that according to the government in April things picked up

 

 

YoY bounced to +3.0%, but remains near recessionary territory…

 

The breakdown shows that auto sales and gas sales surged

 

This is now being spiun as the beginning of a new trend… Here is Bloomberg with the positive spin…

Eleven of 13 major retail categories showed increases last month, indicating the advance was broad-based. Demand at auto dealers climbed by the most in a year and sales at grocery stores and online merchants rose by the most in almost two years.  

 

“Consumers still should have money to spend,” Gennadiy Goldberg, U.S. strategist at TD Securities LLC in New York, said before the report. They “have been saving quite a bit, so they do have a fairly substantial cushion.”

We shall see…

 

Here is the best summary of the congitive dissonance between these two sets (we would call it propaganda, but that would not be polite):

 

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