APR. RETAIL SALES DOWN 0.2%, EX-AUTOS UP 0.5%
The value of retail sales fell 0.2% in Apr. following a 0.2% increase in March. Excluding autos, sales were stronger than most analysts expected, up 0.5%, following an upwardly revised 0.4% increase in March. Excluding autos and gasoline, the value of sales rose 0.6%, the largest gain since Nov.
The 2.8% decline in motor vehicles and a 0.4% decline in gasoline sales helped pull the headline number negative. It was the largest decline in motor vehicle sales since last June and reflected slower sales and softer prices. Gasoline sales declined despite stronger gasoline prices indicating weakening demand for gasoline.
Most other retailers reported increases in sales for the month with building materials showing its largest gains in almost a year, up 1.9%. Electronics and appliance stores and apparel stores also reported gains for the month. Restaurants and bars reported a 0.9% increase in sales, its strongest gain since December.
However department stores and mail-order sales showed no gains for the month.
On a y-o-y basis headline sales were up 2.0% from year earlier and sales excluding autos were up 4.5%. Auto sales were down 8.0%.
Equities will cheer these better-than-expected data and the signal that Gasoline sales may finally be experiencing some demand destruction. Bonds are likely to sell off in response to equity gains. Energy traders should note the downturn in Gasoline Sales and perhaps lighten up on the long side. The buck may get a bid on an energy pullback.