An important data as a reflection of economic activity and spending capacity; On the retail sales side, we see a 1.3% contraction in the headline and an 0.8% contraction in core sales excluding gasoline and automobiles. The data seems to be a basis for the Fed’s “temporary inflation” thinking in terms of dampening effect, in fact, monthly slowdown is very normal after the previous era’s check-doping data. The previous data revisions are interesting… There is an upward revision from 0% to 0.9% for the headline data for April, and from -0.8% to 0.1% for the core data. So the previous month’s data is actually strong. Are we sure that inflation is temporary?
When we look at the sub-items; building materials and garden equipment decreased by 5.9%, other retail merchandising by 5%, motor vehicles and parts by 3.9%, electronics and white goods by 3.4% and general merchandising by 3.3%. The leading groups in the increase were clothing with 3%, food and beverage services and health/personal care with 1.8%. As a matter of fact; It seems that a rotation has taken place between goods and services, that is, the tendency towards services has increased more. Positive for the service industry, especially for restaurants affected by the pandemic restrictions. It also reflects the increase in mobility with the removal of restrictions. The 0.8% decline in online sales shows that people go to the stores more with the openings. Finally; control group data for effect on growth; It contracted by 0.7%, but April data was also revised positively from -1.5% to -0.4%.
The PPI points to a slightly dampened but still continuing rise. Despite an increase of 0.8% monthly and 6.6% annually in the headline; The core is up 0.7% monthly and 4.8% year-on-year. Annual PPI was 6.2% in the headline and 4.1% in the core in April. It shows that the rise is faster for core items if we exclude more volatile items.
Kaynak Tera Yatırım
Hibya Haber Ajansı
Kaynak: Hibya Haber Ajansı
