US April Retail Sales Drop : Covid Impact
U.S retail sales and factory output registered the huge drawback on record in April amid novel coronavirus pandemic . This new data illustrating a recession that it will likely takes years to fully recovery. US Retail Salas data declined significantly and it’s indicating how Wuhan virus is curtailing consumer spending , which is the main driver of the U.S economy .
U.S April Retail Sales Drop : Sector wise numbers
Revenue at retailers and restaurants fell 16.4 per cent from the prior month , almost double the 8.3% drop in March which was previously the worst in data back to 1992, according to the Commerce Department report released on Friday.
As separate report from the Federal Reserve showed Industrial production decreased 11.2% on April , the steepest monthly drop in the 101 years history of the nation. Manufacturing output plummeted by record 13.7% amid declnes in all major industries .
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However, due to COVID-19 pandemic , most Americans stuck at home and the unemployment rate highest since the Great Depression Era , people sharply reduced their spending in the month.
Only one bright spot in Friday US data, that the Consumer sentiment, which rose amid widespread virus-relief payments and discounts for big tickets items.
The U.S April Retails Sales Drop report showed that 13 major categories decreased , led by a 78.8 drop at clothing stores and a 60% drop at electronics and appliance outlets. The only category to record a gain was non-store sales including online sellers which increased 8.4%
Sales at restaurants and Bars (food and Beverage numbers) were down 29.5% from the prior month .
U.S Stocks S&P 500, NASDAQ and Dow Jones reacts heavily on U.S April Retail Sales drop data. More over, major Forex pairs EURUSD and EURGBP also trading in low with huge volatility .
(With inputs Bloomberg )