Retail Sales Down, What About Retail ETFs?

February core retail sales fell 0.1%

US consumers spent less at auto dealers, gas stations and department stores in February, causing overall retail sales to slip 0.1 per cent despite signs elsewhere of a robust economy and the tax cuts signed into law by President Donald Trump starting to take effect. Despite the month-over-month drop, retail sales increased 4% over the past year.

The Commerce Department reported Wednesday that retail sales slipped 0.1% last month, while January's performance was revised upward to a 0.1% drop from a 0.3% decline.

It was the first time since April 2012 that retail sales have declined for three straight month.

Core retail sales - excluding automobiles and parts - rose 0.2%. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product.

The consumer spending, which accounts for more than two-thirds of the USA economic activity, seems to have slowed down at the beginning of the year after rising 3.8% year-over-year in the fourth quarter.

The drop was unexpected in part because many Americans' tax withholdings dropped in early February due to a $1.5 trillion tax break signed into law late a year ago. "With consumer confidence and employment growing, economic fundamentals are favorable for spending to expand in the coming months". The Atlanta Fed slashed its forecast to a 1.9 percent annualised rate from a 2.5 percent pace. The revenue of petrol stations shrinks by 1.2% after falling gasoline.


In a separate report, the Labour Department said a key measure of underlying producer price pressures that excludes food, energy and trade services rose 0.4% in February, matching January's gain. Producer prices, which show inflation before it reaches consumers, have risen 2.8 percent over the past year.

Stimulus in home-related spending has also fueled sales at major home improvement chains like Home Depot and Lowes, both of which saw growth in same-store sales over the latest quarter. The increase in underlying wholesale prices supports views that consumer inflation will pick up in 2018.

Wednesday's report showed declines in spending at vehicle dealers, furniture stores, health stores, gasoline stations, and department stores.

The Fed's preferred inflation measure, the personal consumption expenditures (PCE) price index excluding food and energy, has undershot its target since May 2012.

But there were some pockets of strength. Sales at building material stores increased 1.9% in February.

Related News:



Most liked

QTS Realty Trust (QTS) Cut to "Neutral" at Guggenheim
QTS Realty Trust, Inc. focuses on the ownership, development, and operation of carrier-neutral data centers in the United States. The Kansas-based Vantage Investment Prtnrs Ltd Liability Corporation has invested 3.1% in The Walt Disney Company (NYSE:DIS).

Green Bay Packers Trade Damarious Randall to Cleveland Browns for DeShone Kizer
The Browns need an enforcer at strong safety, and he should be able to make much more of an impact there in 2018. The Browns will send a fourth-round selection this year as well as a seventh-round pick in 2019.

Samsung has released an update for Galaxy
Pictures out of the selfie camera of Samsung Galaxy s9 Plus are bright, however too high in saturation. In South Korea, the smartphones are already available to those who made purchases through preorders.

Tiger Woods To Serve As Captain For Presidents Cup
Off the course, Els is the player Woods sought out in the 1996 British Open when he was trying to decide whether to turn pro. Woods meanwhile said his appetite to captain the USA team had been fueled by a stint as Steve Stricker's assistant in 2017.

Meghan Markle takes on first engagement with The Queen
On Monday, it was reported that Meghan has chosen Australian-born designers Ralph and Russo to create her wedding dress. The couple were sat in the row behind Prince William , who sat studying his order of service, next to Kate.

Education chief DeVos admits she doesn't know how MI schools are performing
I don't know. "The 13 minute segment was heavy on critics who despise DeVos ", said the Media Research Center's Scott Whitlock. STAHL: Yeah, but are they the same? But I'm committed to a process that's fair for everyone involved, ' said DeVos .

DeMar DeRozan says James Harden is a lock for MVP
For Lowry, he said that the Raptors must find a way to maintain the level they showed in the first quarter throughout the game. Friday was a treat for the #Toronto Raptors fans' who saw their team break #Houston Rockets' 17-straight wins record.

Labour MP: Corbyn's views on immigration make Farage smile
The Labour Party has investigated the group and said that it would penalize any members who posted anti-Semitic material. He added: "When Jeremy Corbyn criticises Theresa May on Brexit with his words he is cheering her on in his heart".

Jennifer Garner has responded to THAT video of her looking shook
Regardless of what was racing through her mind at that exact moment, many found it not only hilarious, but super relatable. Her reaction quickly made the rounds with Twitter wondering what made her look so concerned.

Trump Asked McGahn, Priebus About Interviews With Mueller
The White House did not immediately respond to CNBC's request for comment, while the special counsel's office declined comment. Priebus met with the President in the West Wing in December, according to the people with knowledge of their encounter.

Two children killed after auto hits pedestrians in Brooklyn
Miles, a Tony award winning Broadway actress, is also pregnant. "The little girl, she just rode over her", another witness said . Two children were killed and a pregnant woman was left injured after being hit by a driver in New York City on Monday.

Saudi skies now open to flights to Israel
The plane must now take a detour over the Red Sea and around the Arabian Peninsula. Israel, Saudi Arabia and India are parties to the convention.

Seahawks trade another star amid Richard Sherman confusion
All-Pro cornerback Richard Sherman has said goodbye to his Seahawks teammates, according to Ian Rapoport of NFL Network. Both Kam Chancellor and Jeremy Lane took to Twitter to insinuate that Sherman is no longer part of the team.

Amazon promises fix for creepy Alexa laugh
Amazon responded to requests for comment by saying that the company was aware of the issue and is now "working to fix it". In the meantime, users continue to swap laughing Alexa stories as though telling ghost stories at a campfire.

SpaceX puts commercial satellite in orbit as Florida sleeps
A SpaceX Falcon 9 rocket launches the Hispasat 30W-6 satellite from Cape Canaveral Air Force Station in Florida on March 6, 2018. However, the launch was delayed to allow time for more checks on the pressurization system for Falcon 9's payload.