US retail sales remain promising as robust manufacturing output boosts outlook

by   |  VIEW 770

US retail sales remain promising as robust manufacturing output boosts outlook

The US Commerce Department data had unveiled on Tuesday that US retail sales soared strongly last month amid an improvement in supply chain, while consumers had purchased more motor vehicles and stepped up their spending on restaurants, reflecting a strong jab in the arm of US economy following a sharp tottering in GDP over the first quarter.

Aside from that, the rise in US retail sales in April had indicated that consumers’ demand remained strong last month despite a sky-scrapping inflation-surge, while media toplines had unveiled that many common Americans were leaning towards their savings to make end meets with gasoline prices surging to a record of $4.432 per gallon on last Friday, data from AAA had unveiled.

Nevertheless, although a strong retail sales data in April had allayed worries of an impending recession, the economy might not be yet out of the woods as heavyweight lender Goldman raised an alarming bell late on yesterday saying that the chances of a recession in the US is becoming more prominent, as the US Fed’s ultra-hawkish tone could add to holocaust on numerous businesses amid an inflation-burst which has been racing at a breakneck pace.

US retail sales remain strong in April, allays recession fear momentarily

According to data from the US Commerce Department, US retail sales jumped 0.9 per cent in April, while March retail sales were revised higher to 1.4 per cent compared to a previous 0.5 per cent.

Core retail sales spurred up 1.0 per cent, while adding to further boost, manufacturing output rose by 0.8 per cent.

What are the analysts saying?

Meanwhile, addressing to a curb on growing scepticism over a downward spiral in US economic growth, an economist at Citi in New York, Matthew Massicotte said, “The strong retail sales should limit concerns over downside risks to growth and keep Fed officials firmly focused on raising interest rates to address too-high inflation.

At some point, rising prices will damp consumer demand and slow inflation, but for now the strong tailwind from nominal income growth and available consumer credit is driving demand”.