9 May 2016
US: Retail sales likely lifted by stronger auto sales and higher gasoline prices - BBH
Research Team at BBH, suggests that the US April retail sales are expected to have been lifted by stronger auto sales and higher gasoline prices.
Key Quotes
“The 0.7-1.0% projected increase will be the biggest in a year. If the GDP component (excludes, food, building materials, gasoline, and autos) rises by 0.4%, it would the largest increase since last July.
The wholesale inventory figures will help economists fine tune expectations for revisions of Q1 GDP. Recent trade and shipment data suggests a modest upward revision to the first estimate of Q1 GDP toward 0.8%-1.0% (May 27). However, Q2 grow is projected to move back toward trend of near 2.0%. The Fed funds futures market continues to price in practically no chance of a June rate hike.”
Key Quotes
“The 0.7-1.0% projected increase will be the biggest in a year. If the GDP component (excludes, food, building materials, gasoline, and autos) rises by 0.4%, it would the largest increase since last July.
The wholesale inventory figures will help economists fine tune expectations for revisions of Q1 GDP. Recent trade and shipment data suggests a modest upward revision to the first estimate of Q1 GDP toward 0.8%-1.0% (May 27). However, Q2 grow is projected to move back toward trend of near 2.0%. The Fed funds futures market continues to price in practically no chance of a June rate hike.”