US: Retail Sales likely rebounded in March - Wells Fargo

On Monday, March retail sales data is due. Analysts at Wells Fargo, expect a reading of +0.3% in line with market consensus. They remain positive on the consumer. 

Key Quotes: 

“Retail sales have gotten off to a slow start in 2018, falling 0.1 percent in January and February. The sectors that were the biggest drags on retail sales in February were motor vehicle & parts dealers’ sales, furniture & home furnishing sales and electronics & appliance store sales. Gasoline stations’ sales also declined in February, by 1.2 percent, despite higher gasoline prices in the month. Sectors that showed positive growth included sporting goods, hobby, book & music stores’ sales, building material sales and clothing & clothing accessories sales.”

“The first two retail sales reports of 2018 indicate that consumption may have slowed during the first quarter of the year. Control group sales, which go directly into GDP calculations, were flat in January and below consensus in February.”

“Despite the weakness during the first two months, we remain positive on the consumer this year, with accelerating inflation posing the greatest downside risk.”