U.S. Retail Sales Unexpectedly Decrease In January
February 14 2018 - 4:30AM
RTTF2
Retail sales in the U.S. unexpectedly decreased in the month of
January, the Commerce Department revealed in a report on
Wednesday.
The Commerce Department said retail sales fell by 0.3 percent in
January compared to economist estimates for a 0.2 percent uptick in
sales.
Revised data showed that retail sales were unchanged in December
compared to the previously reported 0.4 percent increase.
The unexpected decrease in retail sales was primarily due a
steep drop in sales by motor vehicle and parts dealers, which
plunged by 1.3 percent in January after slipping by 0.1 percent in
the previous month.
Excluding the decrease in sales by motor vehicle and parts
dealers, retail sales were unchanged in January after inching up by
0.1 percent in December. Ex-auto sales had been expected to climb
by 0.4 percent.
Notable decreases in sales by building material and supplies
dealers and health and personal care stores offset jumps in sales
by gas stations, clothing and accessories stores and miscellaneous
store retailers.
Closely watched core retail sales, which exclude automobiles,
gasoline, building materials and food services, were unchanged in
January after falling by 0.2 percent in December.
"Overall, some of the weakness in January retail sales could be
linked to the unusually high number of reported flu cases last
month but, on balance, it was probably inevitable that sales would
start to slow after their recent strength," Andrew Hunter, U.S.
Economist at Capital Economics.
He added, "In any case, with jobs growth still strong, consumer
confidence at an unusually high level and the recent tax cuts
providing a one-off boost to disposable incomes this month, the
near-term prospects for consumer spending remain fairly
bright."
Compared to the same month a year ago, retail sales were up by
3.6 percent in January compared to the 5.2 percent year-over-year
jump in December.
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