KONTAN.CO.ID - WASHINGTON. U.S. retail sales fell more than expected in March as consumers cut back on purchases of motor vehicles and other big-ticket items, suggesting that the economy was losing steam at the end of the first quarter because of higher interest rates. Retail sales dropped 1.0% last month, the Commerce Department said on Friday. Data for February was revised up to show retail sales falling 0.2% instead of 0.4% as previously reported. Economists polled by Reuters had forecast sales slipping 0.4%. They increased 2.9% year-on-year in March. "American consumers are pulling back, but it's unclear how much of the fade is normal payback from an earlier binge and how much is underlying weakness," said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. "We suspect the headwinds are starting to dominate, and still look for a mild contraction in both spending and the economy through mid-year."
US Retail Sales Post Second Straight Monthly Drop
KONTAN.CO.ID - WASHINGTON. U.S. retail sales fell more than expected in March as consumers cut back on purchases of motor vehicles and other big-ticket items, suggesting that the economy was losing steam at the end of the first quarter because of higher interest rates. Retail sales dropped 1.0% last month, the Commerce Department said on Friday. Data for February was revised up to show retail sales falling 0.2% instead of 0.4% as previously reported. Economists polled by Reuters had forecast sales slipping 0.4%. They increased 2.9% year-on-year in March. "American consumers are pulling back, but it's unclear how much of the fade is normal payback from an earlier binge and how much is underlying weakness," said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. "We suspect the headwinds are starting to dominate, and still look for a mild contraction in both spending and the economy through mid-year."