Retail Sales Plunge Way More Than Expected

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Posted: May 15, 2020 10:15 AM
Retail Sales Plunge Way More Than Expected

Source: AP Photo/Marcio Jose Sanchez

Economists missed the mark badly this month on retail sales estimates.

The Commerce Department posted miserable Retail Sales Numbers for April.

Retail sales declined 16.4% vs Econoday Expectations of an 11.2% decline.  Excluding autos, the miss was much bigger. 

Ex-auto sales declined 17.2% compared to the expected 8.6% decline.

Commerce Department Statement

Due to recent events surrounding COVID-19, many businesses are operating on a limited capacity or have ceased operations completely. 

Advance Retail Sales

To see the chart, click here.

Clothing was down a whopping 78.8%, electronics 60.6%, Gasoline 28.8%. From a year ago, clothing was down 89.3%. 

Even grocery store sales were down, a surprise to me. 

The one bright spot was nonstore retailers such as Amazon, up 8.4%.

No V-Shaped Recovery

Despite talk from hopers, even the fed understands there will not be a V-Shaped recovery.

Instead they are promoting a helicopter drop of money. For details, please see Panic Sets In: Fed Promotes More Free Money.