Strong recovery expected in US retail sales – TDS

FXStreet (Edinburgh) - Strategist Jacqui Douglas at TD Securities sees May’s retail sales in the US economy posting a strong print.

Key Quotes

“Momentum is beginning to build in the consumer spending activity, and we expect retail sales to post a substantial (and above consensus) gain in May with total spending rising at a very brisk 1.6% M/M pace”.

“Strong auto sales and higher spending on gasoline should be the key drivers”.

“We expect this report to reinforce the more constructive narrative on economic growth in Q2, pointing to further positive momentum in household spending - consistent with improvement in household sentiment and labour market activity in recent months”.

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