By the Numbers

CHANGPENG ZHAO

CEO OF BINANCE

Changpeng Zhao recently says that his company is unlikely to buy up any banking institutions, despite a growing worry of crypto companies being debanked, including Binance’s own operation in Australia

MOHAMED KHADIRI

CEO OF BANK OF SHARJAH Bank of Sharjah has appointed Mohamed Khadiri as its CEO starting May 17, 2023. He has earlier worked for banks like Salomon Smith Barney, Citibank, Barclays and HSBC

The year-on-year, sales grew just 1.6%, well below the CPI of 4.9%

After growing 8.7% in 2022, Saudi Arabia's GDP is set to reach 2.2% by the end of this year

US retail sales rose 0.4%

In the United States, consumers barely kept pace with inflation in April as retail sales rose but fell short of expectations, the Commerce Department reported. The expanded sales report showed an increase of 0.4%, below the Dow Jones estimate of 0.8%. Excluding auto-related numbers, sales rose 0.4%, in line with expectations. Since the figures are not adjusted for inflation, the overall increase was the same as the monthly CPI increase of 0.4%.

The year-on-year, sales grew just 1.6%, well below the CPI of 4.9%. A 0.8% drop in gasoline sales slowed spending numbers. The sporting goods, music and bookstores fell 3.3%, while furniture and home furnishings fell 0.7%. Other stores retailers were the top performers, up 2.4%, while online sales rose 1.2% and health and personal care retailers were up 0.9%. Food and beverage sales increased 0.6% and are up 9.4% on a 12-month basis.

Lydia Boussour, senior economist at EY-Parthenon said, "Retail sales posted a modest rebound in April, but the gain mostly reflected higher prices and a sustained turnaround is unlikely with consumer fundamentals turning less supportive."

Although the report suggested consumers are struggling, it was the first positive reading since January and followed a 0.7% decline in March. The control group, which excludes autos, gas stations, building material and utility stores, and food & beverage establishments, was also up 0.7%, ahead of the 0.4% expectation.

Ronnie Walker, an economist at Goldman Sachs said that the report was stronger than previous assumptions and suggests upside potential for the outlook for consumption. Treasury yields rose after the report as the initial reaction focused more on the positive ex-auto numbers, although stocks were lower in morning trade. Consumers still have a tough road ahead.

There are signs that interest rates will rise. In fact, Atlanta Federal Reserve Chairman Raphael Bostic said that he thinks a rate hike is more likely than the cuts that markets had been pricing in before the end of the year. Consumers have borrowed more to cope with persistently high levels of inflation due to which debt rose to $17 trillion dollars.