CIBC Research discusses its reaction to today's US retail sales print for the month of April.
"While headline retail sales only managed to hold onto the prior month's big advance in April, that prior month surge was revised even higher to make up for the disappointment. Headline sales were flat in April (consensus +1.0%), however the already strong prior month was revised up to 10.7%, from 9.8% previously reported," CIBC notes.
"Even after today's disappointment in the control group of retail sales, its level is still not only well above where it stood before the pandemic last February, but also well above the average for Q1 of this year, suggesting goods consumption will remain a big positive contributor to overall GDP for at least one more quarter in Q2. Thereafter, continued strengthening in spending on services and pullbacks in some areas of goods consumption that have benefitted from the pandemic, will mean growth becomes increasingly reliant on the consumption of services again," CIBC adds.