Headline Retail Sales Steady In January, Control Group Disappointment Sparks GDP Growth Anxiety

Headline Retail Sales Steady In January, Control Group Disappointment Sparks GDP Growth Anxiety

After December’s massive surge in consumer revolving debt (i.e. credit card spending), one might have expected a retail spending ‘hangover’ of sorts in January but headline data came in up 0.3% MoM, as expected.

Source: Bloomberg

Core retail sales (es autos/gas) rose 0.4% MoM, slightly better than the 0.3% expected.

December saw huge spikes in headline and core retail sales YoY (thanks to the stock-market-induced plunge seen in Dec 2018), and as expected the YoY gains slowed dramatically in January as the favorable comps evaporated…

Source: Bloomberg

Under the hood, 8 categories were higher, 4 lower, and notably clothing stores slumped 3.1% (due to the warm weather)…

Finally, we note that the Retail Sales Control Group – that is used for GDP calculation purposes, disappointed significantly, flat in January against expectations of a 0.3% rise…

Source: Bloomberg

The trend in that retail spending data is not good.


Tyler Durden

Fri, 02/14/2020 – 08:38

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Author: Tyler Durden

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