CIBC Research discusses its reaction to today's US retail sales report for the month of May.
"Don't read too much into the larger than expected drop in US retail sales in May, as it comes on the heels of an upward revision to April and a dramatic fiscal stimulus-fueled spike in March. Total retail sales fell by 1.3% versus the consensus forecast of -0.8%, but the April figure was revised up to +0.9% from 0.0% previously. May's decline included a sizeable drop in autos as supply chain issues weighed on sales, offsetting an advance in restaurant receipts as dining out returned," CIBC notes.
"Given the increase in prices in May, the drops will be amplified in volume terms, however, the positive revisions to the April figures negate the downside surprise in today's data," CIBC adds.