Retail Sales Weak In The Most Recent Week

Easter distortions, which are always a headache when looking at retail sales data, held down Redbook's same-store year-on-year sales reading which is at a very weak plus 1.6 percent in the May 2nd week. The last 3 reports have been hit by these distortions which reflect this year's Easter shift from late April last year to early April this year. The distortions are now played out, however, and won't be affecting the May 9 week. Looking to this month, the report notes early signs of strength for May's first shopping event, Mother's Day on the 10th. The second event is Memorial Day, May 25th.

Judging the strength of retail sales is key at the Fed right now which expects to see a pickup in line with the strength underway in consumer confidence. But Redbook's results, because of Easter, are too hazy to be useful judging the government's retail sales report where the key figure isn't an unadjusted year-on-year comparison but an adjusted month-to-month comparison.