U.S. Outlook: Consumers still hold back in April

Posted By Scott Anderson In Economic Outlook | No Comments

We can’t blame bad weather for another month of disappointing retail sales.

Graph showing recent decline in retail sales. [1]The April retail sales numbers suggest weaker real consumer spending growth in Q2 that previously expected.

For more on this and other economic developments this week, see my full analysis. Highlights are outlined below, followed by a link to the full U.S. Outlook report, delivered on May 15.

Key observations:
  • In the last year, retail sales excluding motor vehicles haven’t grown at all, something rarely seen in the U.S.
  • We have lowered our forecast for real consumer spending growth in Q2 from 3.8% to 3.2%.
  • It doesn’t appear labor market worries are holding consumers back.
  • There is a rising probability interest rate hikes could be delayed until the end of the year.

Click here to read my full report. [2]

Article printed from Bank of the West: https://changematters.bankofthewest.com

URL to article: https://changematters.bankofthewest.com/2015/05/15/u-s-outlook-consumers-still-hold-back-in-april/

URLs in this post:

[1] Image: http://blog.bankofthewest.com/wp-content/uploads/2015/05/graph_retailsales_051515.jpg

[2] Click here to read my full report. : http://blog.bankofthewest.com/wp-content/uploads/2015/05/BankoftheWest_USOutlook_05_15_15.pdf

Submit an Idea

[contact-form-7 id="32" title="Share An Idea"]

You are leaving the Bank of the West Change Matters site. Please be aware: The website you are about to enter is not operated by Bank of the West. Bank of the West does not endorse the content of this website and makes no warranty as to the accuracy of content or functionality of this website. The privacy and security policies of the site may differ from those practiced by Bank of the West. To proceed to this website, click OK, or hit Cancel to remain on the Bank of the West Change Matters site.