US Retail Sales April 2014
Consumers spent less than economists had presumed during April, while the amount they spent during March was more than thought at first. Shopper reduced spending in eight of 13 segments lowering outlays on electronics and furniture items, which are amongst the smallest of those groups. Elsewhere, they spent less on dining out and on miscellaneous items while online and print-response sales also suffered. The headline gain of 0.1% was well below the forecast increase of 0.4%.
Prior month data was revised from an increase of 1.1% to 1.5%. During April consumption excluding autos and parts was unchanged on the prior month, while stripping out sales at gasoline stations saw overall sales weaken by 0.1%. The so-called ‘Control Group’, which measures sales less autos, gas, building materials and food items, and is used to calculate GDP, fell by 0.1% last month setting the major component of growth off on a poor-footing for the second quarter. The report has blown away some of the earlier enthusiasm surrounding the NFIB small business report with futures retreating(CME:ESM14) from indicating a strong opening gain back to the flat-line.
Chart – Food and beverage sales rose, dollars spent dining out fell