2016 outlook for retail is positive, stable for apparel and restaurants, says Moody's

Moody's Investors Service said operating income growth in 2016 will exceed 5% in eight out of 13 retail sub-sectors, including home improvement and auto parts. For U.S. restaurants, operating profit growth will be at the high end of the 2% to 4% range over the next 12 to 18 months. And the apparel industry will experience a slowdown in operating profit growth to the high end of the 3% to 5% range. "Retail sales growth will be toward the lower end of our 3% to 4% forecast range in 2015, which reflects much lower first-half gasoline prices at the pump relative to 2014 and severe weather in the first quarter that forced consumers to stay at home," said Mickey Chadha, lead retail analyst at Moody's. "We expect that 2016 retail sales growth will improve to between 4% to 5%."

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.