Retail Sales: Rebound But Trend Decelerating

Bottom Line:   Retail sales rebounded less than expected in April, but net of revisions, sales were mainly in line with expectations. Auto sales rebounded only modestly after two months of sharp declines, while core sales, led by online, rebounded a touch more than expected. Building and garden store sales saw solid gains after significant declines in March. Overall, the trend in retail sales remained modest, with the last three months of core sales annualizing at just 1.14% growth. The trend rate of nominal sales growth looks to be decelerating to the 2.5 - 4% range,  just modestly above the annualized pace of core goods inflation.

Total US Retail Sales ROSE 0.42%  in April (consensus was +0.8 %), Feb revised up to -0.66% from -0.73%, Mar revised down to -0.69% from -0.64%. Core Retail Sales(excludes Autos, Parts & Gas) ROSE 0.56%  (consensus was +0.2 %). Sales in the Control Group (Core less food services and building supply) ROSE 0.65%  (consensus was +0.4 %).