US retail sales showed minor rise in April

US retail sales ticked up 0.1% in April, marking strong declaration from the previous month, when sales jumped by 1.7% (upwardly revised from initial 1.4% release), but came slightly above 0.0% consensus.

Highly uncertain outlook that pulled households from spending was mainly behind significant slowdown in April, after retail sales were in a choppy mode during past few months, due to massive shockwaves from new US tariff policies.

One of key components of the report, retail sales excluding automobiles, gasoline, building materials and food services, which correspond most closely with the consumer spending component of gross domestic product, were up 0.1% in April against 0.3% forecast 0.5% gain in March.

Consumer spending was solid in the first quarter and expected to remain in an upward trajectory heading into the second quarter, underpinned by stable wage growth, while households are pulling back on optional spending on services like airline tickets and hotel stays because of the economic uncertainty.

Economist however remain cautiously optimistic and expect slightly stronger growth in coming months, after the economy contracted in the past three-month period, as latest trade agreement between the US and China provided relief on signals that the worst scenario has been avoided.