April Retail Sales Drop

The lack of any postwar rebound in April is bad news for the economy, and suggests the Fed is more likely to cut rates in June

Retail sales dropped 0.1% in April, surprising the market, which had expected a 0.4% increase. Sales are up 4.1% from a year ago. Excluding cars, retail sales plunged 0.9%, compared with a 0.2% rise expected by the market.

Gas station sales fell 5.9%, reflecting lower gasoline prices. Clothing was off 3.2%, despite the late Easter, and department stores fell 1.4%. Excluding motor vehicles, sales are up 2.8% from a year ago.

The lack of any postwar rebound in sales in April is bad news for the economy, and suggests the Fed is more likely to act in June.

From S&P MarketScope

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