Forex Flash: US Retail Sales to be modest due to lower spending on gasoline – TD Securities

TD Securities analysts expect consumer spending momentum to moderate in January with total retail sales rising at a very meagre 0.1% M/M pace, after last year's decent activity. Vehicle sales are likely to remain relatively unchanged on the month, and sales excluding autos should rise at an equally modest 0.1% M/M pace. “The weakness on the headline number should be driven mostly by the decline in spending on gasoline, and core spending activity (which excludes spending on autos, gas and building material, and is a useful gauge on the tone of real spending) should post a more respectable 0.4% M/M gain, adding to the positive momentum in the past few months”, wrote analyst Alvin Pontoh.