AABP EP Awards 728x90

Retail sales increase surprises

/wp-content/uploads/2022/11/BR_web_311x311.jpeg

An unexpected increase in sales at U.S. retailers last month may be a signal that consumers will contribute more to economic growth than originally expected, Bloomberg reported.

Purchases rose 0.3 percent in February, as Americans shrugged off severe winter weather to go shopping, according to Commerce Department figures released today.

Though figures for the prior two months were revised down, removing some of the luster from today’s data, the news may be a sign that expansion is broadening beyond manufacturing. Sales excluding automobiles rose 0.8 percent, also exceeding expectations.

“There is slow re-engagement from consumers,” said Ethan Harris, head of North America economics at Bank of America-Merrill Lynch Global Research. “As the economy slowly improves and the labor market stabilizes, people get a little less conservative in their spending.”

Retail sales were projected to decrease 0.2 percent after an originally reported 0.5 percent gain in January, according to a Bloomberg survey of 77 economists. Forecasts ranged from a decline of 1 percent to a 0.9 percent gain. According to the survey median, purchases excluding autos were projected to increase by 0.1 percent.

Purchases of electronics led the charge with a 3.7 percent climb, the largest gain since January 2009. Receipts at bars and restaurants rose 0.9 percent, the most since April 2008.

Comparable-store sales climbed 4.1 percent in February, topping a 3 percent estimate by Retail Metrics Inc. and the biggest gain in 27 months.

The U.S. government reported last month that consumer spending rose at a 1.7 percent annual pace in the first quarter.