Automobiles drive U.S. retail sales higher in March
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[April 16, 2018]
By Lucia Mutikani
WASHINGTON (Reuters) - U.S. retail sales
rebounded in March after three straight monthly declines as households
boosted purchases of motor vehicles and other big-ticket items,
suggesting consumer spending was heading into the second quarter with
momentum.
The Commerce Department said on Monday retail sales increased 0.6
percent last month after an unrevised 0.1 percent dip in February.
January data was revised to show sales falling 0.2 percent instead of
the previously reported 0.1 percent drop.
Economists polled by Reuters had forecast retail sales rising 0.4
percent in March. Retail sales in March increased 4.5 percent from a
year ago.
Excluding automobiles, gasoline, building materials and food services,
retail sales rose 0.4 percent last month after being unchanged in
February. These so-called core retail sales correspond most closely with
the consumer spending component of gross domestic product.
They were previously reported to have risen 0.1 percent in February.
Last month's pick-up in core retail sales will do little to change
expectations of a sharp slowdown in consumer spending in the first
quarter.
The dollar was trading weaker against a basket of currencies. Prices for
U.S. Treasuries were marginally lower while U.S. stock index futures
rose slightly.
Economists largely blame the weakness in retail sales at the start of
the year on delays in processing tax refunds. Some also argue that
income tax cuts which came into effect in January, only reflected on
most workers' paychecks in late February.
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Cars are seen in a parking lot in Palm Springs, California, U.S. on
April 13, 2015. REUTERS/Lucy Nicholson/File Photo
Consumer spending, which accounts for more than two-thirds of U.S. economic
activity, grew at a robust 4.0 percent annualized rate in the fourth quarter. It
is expected to have slowed to below a 1.5 percent rate of increase in the first
quarter.
Growth estimates for the January-March quarter are running below a 2 percent
rate. The economy expanded at a 2.9 percent pace in the October-December
quarter. The government will publish its advance estimate for first-quarter GDP
growth later this month.
In March, auto sales jumped 2.0 percent, the largest increase since last
September, after declining 1.3 percent in February. Receipts at service stations
fell 0.3 percent, reflecting cheaper gasoline.
Sales at furniture stores climbed 0.7 percent while those at electronics and
appliance stores increased 0.5 percent. But sales at building material stores
fell 0.6 percent last month.
Receipts at clothing stores dropped 0.8 percent while sales at online retailers
increased 0.8 percent. Sales at restaurants and bars gained 0.4 percent.
Receipts at sporting goods and hobby stores dropped 1.8 percent.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)
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