Category Performance: Excluding auto-related sales, retail sales jumped 1.1%, with notable growth in online sales (2.7%) and miscellaneous retailers (2.1%).
Market Reaction: Stock market futures rose after the report, reflecting optimism, despite escalated tensions in the Middle East.
Empire State Manufacturing Survey: Continued Contraction
Manufacturing activity in New York State continued to contract in April, according to the Empire State Manufacturing Survey. The general business conditions index rose slightly but remained below zero at -14.3, indicating ongoing challenges for manufacturers.
Persistent Decline: New orders and shipments declined significantly, with unfilled orders continuing to shrink.
Labor Market Weakness: Employment and hours worked declined, while optimism about future business conditions remained subdued.
Market Forecast: Cautious Optimism
Despite challenges in the manufacturing sector and geopolitical tensions, the strong retail sales data suggests resilience in consumer spending. However, ongoing inflationary pressures and uncertainties warrant cautious optimism. Traders should monitor upcoming economic indicators for insights into market trends.
