Financial News: U.S. Retail Sales Dip Amid Sharp Pullback In

U.S. Retail Sales Dip Amid Sharp Pullback In Auto Sales

03/15/2023 - 09:20:00 (RTTNews)

(RTTNews) - After reporting a sharp increase in U.S. retail sales in the previous month, the Commerce Department released a report on Wednesday showing sales pulled back by slightly more than expected in the month of February.

The Commerce Department said retail sales fell by 0.4 percent in February after spiking by an upwardly revised 3.2 percent in January.

Economists had expected retail sales to decrease by 0.3 percent compared to the 3.0 percent surge originally reported for the previous month.

"Retail sales took a step back in February, but not enough to signal a major deterioration in consumers' willingness to spend," said Oren Klachkin, Lead U.S. Economist at Oxford Economics.

He added, "Momentum may stay upbeat in the very near term, but we expect consumer spending to weaken later this year as income gains soften, excess savings run dry, borrowing costs rise, and inflation stays elevated."

The decrease in retail sales largely reflected a sharp pullback in sales by motor vehicle and parts dealers, which tumbled by 1.8 percent in February after soaring by 7.1 percent in January.

Excluding the steep drop in sales by motor vehicle and parts dealers, retail sales edged down by 0.1 percent in February after jumping by 2.4 percent in January. The dip matched expectations.

The modest decrease in ex-auto sales partly reflected notable declines in sales by department stores, food services and drinking places and furniture and home furnishings stores.

Meanwhile, the report said core retail sales, which exclude automobiles, gasoline, building materials and food services, increased by 0.5 percent in February after surging by 2.3 percent in January.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

China Industrial Profits Fall Sharply (01 hr(s), 27 min(s), 50 sec(s) ago)
(RTTNews) - The decline in China's industrial profits deepened in the first two months of 2023 ...Full Story»

Japan Leading Index Falls Less Than Estimated (01 hr(s), 35 min(s), 50 sec(s) ago)
(RTTNews) - Japan's leading index decreased slightly less than initially estimated in January, ...Full Story»

European Economic News Preview: Germany Ifo Business Confidence Data Due (02 hr(s), 10 min(s), 50 sec(s) ago)
(RTTNews) - Business confidence from Germany and monetary aggregates from the euro area are the to ...Full Story»

Japan Producer Prices Climb 1.8% On Year In February (11 min(s), 10 sec(s) ago)
(RTTNews) - Producer prices in Japan were up 1.8 percent on year in February, the Bank of Japan sa ...Full Story»

Japan Producer Price Data Due On Monday (54 min(s), 10 sec(s) ago)
(RTTNews) - Japan will on Monday release February figures for producer prices, highlighting a ligh ...Full Story»

Denmark Economic Sentiment Rises Further (39 min(s), 10 sec(s) ago)
(RTTNews) - Denmark's economic sentiment rose for a third month in a row in March, figures fro ...Full Story»

U.S. Durable Goods Orders Unexpectedly Slump As Aircraft Demand Extends Nosedive (11 min(s), 10 sec(s) ago)
(RTTNews) - Reflecting a continued slump in orders for transportation equipment, the Commerce Depa ...Full Story»

Spain Q4 GDP Growth Unrevised At 0.2% (06 min(s), 10 sec(s) ago)
(RTTNews) - Spain's economy expanded at a stable pace as initially estimated in the final quar ...Full Story»