According to the data, retail sales in the US increased 0% month-on-month in April, falling short of market expectations of 0.4% and lower than 0.6% after a downward revision in March.
Retail sales in the US unexpectedly remained flat month-on-month in April, and the previous month's growth data were all revised downward, indicating that high borrowing costs and rising debt are prompting consumers to be more cautious. According to data released on Wednesday, retail sales in the US increased 0% month-on-month in April, falling short of market expectations of 0.4% and lower than 0.6% after a downward revision in March.
US retail sales data for April shows that originally strong consumer demand is weakening, and this demand has been supporting the US economy. Although the labor market remains strong, provides the necessary funding for consumption, high prices and interest rates may further strain the financial situation of American households and limit discretionary purchases.
The New York Federal Reserve said on Tuesday that US household debt reached a record high in the first quarter, and the share of consumers who have trouble paying their debts has risen. Meanwhile, data also released on Wednesday showed that the US core CPI increase in April was in line with expectations, falling from 0.4% to 0.3%, driving the year-on-year increase in core CPI to 3.6% from 3.8% in March; the overall CPI increase also fell from 0.4% to 0.3%, slightly lower than expected, while the year-on-year increase fell from 3.5% to 3.4%.
AmeriVet Securities strategist Gregory Faranello said that CPI and retail sales data are beneficial to the Federal Reserve. Both show the easing of inflation that the Federal Reserve is seeking. These figures will support Federal Reserve Chairman Powell's shift from “maintaining high interest rates for a longer period of time” to “possibly lowering interest rates.”
Edit/evans