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US retail sales volumes more than double forecasts in April
US consumers took Main Street by storm in April with sharp increases seen in outlays on building materials, gasoline and clothing.
Indeed, as Mickey Levy at Berenberg Capital Markets pointed out, even department store sales rose, leading him to tell clients that there were now "some" upside risks to his forecast for US gross domestic product growth of 4% in the second quarter on an annualised basis.
Total retail sales volumes jumped by 0.8% month-on-month in April to reach $501,971bn, according to the Department of Commerce.
Economists had forecast a print of just 0.4%.
The so-called 'control group' of US retail sales, which excludes those of automobiles and gasoline, also outpaced forecasts, growing by 0.8% versus March (consensus: 0.3%).
Sales at furniture and sporting goods stores were among the few exceptions, falling by 2.4% and 1.1%, respectively.
March's reading for the rate of change in total retail sales volumes was also revised higher, from a monthly rate of 0.3% to 0.4%.
"We remain confident in the outlook for continued solid consumption growth," Levy added.
"Labor markets are in good shape - sub-4% unemployment rate, initial jobless claims hovering near 45-year lows, +200k monthly job growth - household net worth topped $100 trillion in Q1 despite the drop in equity prices, and interest rates are low."