US: Data drought finally comes to an end - TDS

Research Team at TDS, suggests that the US data drought finally comes to an end today with the release of retail sales, producer prices, business inventories and consumer sentiment.

Key Quotes

“Stronger auto sales and higher gasoline prices should help retail sales to rebound in April with TD calling for a 1.0% m/m headline print, restrained to 0.6% m/m when excluding autos. Core sales should be a more modest 0.3% m/m (consensus: headline 0.8% m/m, ex. autos & gas 0.6%, core 0.4% m/m).

University of Michigan Sentiment is expected to improve slightly in May, with the market consensus calling for an 89.5 print (TD: 90.0), though inflation expectations will be arguably more important to the market.

Business inventories should see a 0.2% monthly build, with TD calling for an above-the-market 0.3% print.

Lastly, producer prices are expected by the market to increase by 0.3% m/m in April, while TD sees a 0.5% monthly print. Core producer prices should be slightly softer at +0.1% m/m (TD and market) due to rising energy prices throughout April.”