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Sales decline sets a new record at -16.4%, after the March 8.3% drop. Equities and the dollar fall, Treasury yields unchanged, FXStreet’s analyst Joseph Trevisani reports.

Key quotes

“Retail sales sank 16.4% in April more than the -12.4% forecast and combined with the March 8.3% plunge, consumption has now dropped 24.7%. The control group category that reproduces the consumption component of GDP, fell 15.3% far more than the -4.6% forecast.”

“Market reaction was relatively muted with the dollar down about 50 points against the euro and Treasury yields unchanged and Dow futures down 197 points.”  

“For an economy that is overwhelmingly dependent on consumption, these declines spell disaster unless they are rapidly and substantially reversed.”