US Retail Sales: A modest rise is expected in May - Wells Fargo

On Wednesday, the key event will be the FOMC meeting but important economic reports will be release in the US, including retail sales. Analysts from Wells Fargo, expect the headline to show a gain of 0.2% in May. 

Key Quotes: 

“Retail sales rose a less-than-expected 0.4 percent in April, while March’s initially reported decline was upwardly revised to a 0.1 percent gain. The headline increase was supported by rebounds in auto sales and sales at building material & garden equipment stores, which rose 0.7 percent and 1.2 percent, respectively. Nonstore retailers, which continue to benefit from the structural shift towards online purchases, also reported a strong gain. Control group retail sales rose a more modest 0.2 percent in April, although the February and March prints were revised higher.”

“While April’s increase in retail sales was weaker than expected, the details point to a potential acceleration of consumption in Q2. We expect retail sales to rise a modest 0.2 percent in May and look for personal consumption to increase at a 3.3 percent annualized rate in Q2”