Retail Sales Move Higher In April

The consumer snapped back to life in April, driving retail sales 1.3 percent higher with gains spread throughout the report. Motor vehicles is the key component, up a sharp 3.2 percent to reverse the prior month's decline. Excluding motor vehicles, retail sales rose 0.8 percent. Sales at gasoline stations, boosted by higher prices, also contributed strongly, up 2.2 percent in the month. But even excluding both vehicles and gasoline, sales still rose 0.6 percent for the third straight gain, two of which are very strong. Apparel was also a big contributor in April along with nonstore retailers and with restaurants showing a gain. Today's report points to a solid start for the second quarter and gives some life to the possibility of a June FOMC rate hike.

Recent History Of This Indicator:
Strength in auto sales is expected to fuel a 0.9 percent jump in retail sales for April which are also expected to get help from higher prices at gasoline stations. Yet these two components aside, ex-auto ex-gas core sales are expected to rise 0.4 percent in what would be a very solid gain for this reading. Consumer spending, though still the economy's central strength, has been a disappointment so far this year and improvement in this report, especially any dramatic improvement, could revive confidence in the second-quarter outlook and with it talk of a Federal Reserve rate hike.