The Commerce Department report showed retail sales in April rose across all categories, with the exception of building materials and garden equipment.
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Seasonally adjusted sales rose by 1.3% to $453.4 billion, compared with March 2016 sales of $447.8 billion, and rose 3% year over year.
In addition, sales at electronics and appliance outlets increased 0.5%, and sales at restaurants and bars rose 0.3 percent. “This sets the stage for an upturn in economic growth in the second quarter and should be encouraging for Federal Reserve policymakers as they contemplate interest rate adjustments”.
Benchmark 10-year notes rose 16/32 in price on Friday to yield 1.71 percent, down from 1.76 percent on Thursday.
They were previously reported to have gained 0.1 per cent in March. On a yearly basis, GDP growth eased marginally to 1.5 percent from 1.6 percent. The report doesn’t include estimates for most services, which make up the bulk of consumer spending. Food and beverage sales also rebounded, gaining 0.9%.
Sales at US retailers and restaurants grew at the fastest pace in more than a year last month, a sign consumers stepped up spending after a slow start to 2016.
Asian stock markets sank Friday as investors evaluated the latest set of corporate earnings and awaited a slew of US and Chinese economic data.
The dollar has strong fundamentals supporting it, particularly now after the release of April Retail Sales, which helped improve the outlook for Q2 growth.
In the United Kingdom, the pound declined 0.4 percent this week to US$1.4372 as of 5pm in London on Friday, after dropping 1.3 percent in the five days through May 6. USA stocks were trading lower.
Receipts at service stations increased 2.2%, reflecting recent increases in gasoline prices.
The strong rebound in sales last month does suggest that this year’s early Easter holiday made it hard for the government to adjust the data for seasonal swings in demand. German consumer prices fell 0.4% for April with an annual decline of 0.1% from a 0.3% gain in the year to March. It cut its profit forecast for the year to $2.50-$2.70 per share from $3.10-$3.35. Sales at clothing stores surged one per cent, the largest increase since May 2015.
Auto sales increased by 3.2 percent in April after a sharp 3.2% fall recorded in the previous month. In the 12 months through April, the PPI was unchanged after dipping 0.1 percent in March. Excluding both categories, sales advanced 0.6% last month.
Oil slipped on Friday on a stronger dollar and as investors cashed in on a three-day rally, but prices still ended the week higher after production in Nigeria fell to its lowest in two decades and wildfires slashed output from Canada’s oil sands.
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Macy’s, the largest department chain, said this week same-store sales fell 5.6 percent in the first quarter, and it expected full-year sales to decline 3-4 percent.
