


If the omniscient chaps at BofA are right, the soft landing narrative is about to crash as they forecast a well below consensus tumble in retail sales this morning...
Source: BofA
...but notably this is mainly due to seasonals, apparently. Seasonal adjustments are likely to impact the October retail sales report. The Census Bureau's projected seasonal factor (SF) for October 2024 is considerably less favorable than the October 2023 SF. Meanwhile, the October SF in the BAC card data is little changed from last year.
Source: BofA
Well, a lot!
BUT - the disappointments are likely driven by major upward revisions to the prior month
Source: Bloomberg
The driver of the headline beat was all cars and food...
Core retail sales growth slowed on a YoY basis...
Source: Bloomberg
On a non-seasonally-adjusted basis, retail sales jumped 6.8% MoM...
Source: Bloomberg
A big outlier of an adjustment for an October... it's almost as if they wanted to make the numbers look bad on purpose...
The Control Group data is 'noisy' - September was revised up to its strongest MoM jump since Jan 2023 (but this was the second monthly decline in nominal retail sales in three months)...
Source: Bloomberg
A real Goldilocks of a data set there - hot headline, cool core, ugly control group - take your pick, dove or hawk!