U.S. retail sales likely to have bounced back in April, says TD Economics

U.S. retail sales are likely to have risen in April. According to a TD Economics research report, the retail sales are expected to have grown 0.4 percent, following a 0.2 percent decline in March. Auto sales, which dismayed in April, might still provide a moderate stimulus while gasoline station sales might be negligible to a modest negative. Consensus expectations are for retail sales to have grown 0.6 percent.

Warmer than normal temperatures imply a change to building materials and restaurant spending as well. Outside these categories, core sales are expected to have moderated to a rise of 0.3 percent after rising 0.6 percent in March. The growth in March possibly reflected an upbeat late-Easter effect. In all, these projections might continue to be supportive of the second quarter real PCE at or just lower than the 3 percent rate, stated TD Economics.