iShares Chief Investment Strategist: Not Yet Time To Shop Consumer Stocks
By Russ Koesterich:
US Consumer: Better, but Long-Term Headwinds Remain
Last week US retail sales came in well below expectation. While much of the shortfall could be attributed to autos and gasoline sales, it was the second month in a row in which retail sales data disappointed. This is also consistent with the consumption component in the Q4 GDP print. While the US economy accelerated in the fourth quarter, the pick-up was not due to a sudden consumer splurge. US real personal consumption grew at 2% in the fourth quarter of last year. While this was a modest improvement from Q3, it was exactly in-line with the average since the recovery began in mid-2009. In other words, with a few blips along the way, US consumption growth has been relatively steady at a 2% annualized rate for the past 10 quarters. This compares poorly with the long-term average of 3.40%, or even withComplete Story »
- Original article
- Login or register to post comments
