Sales at U.S. retailers declined in March for a second month, hurt by fewer purchases of automobiles, Commerce Department data showed Friday.
The value of purchases fell 0.2 percent (in line with median forecast) after February sales were revised to a 0.3 percent decrease (previously reported as a 0.1 percent gain). Retail control-group sales, which are used to calculate GDP and exclude the categories of food services, auto dealers, building materials outlets and gasoline stations, rose 0.5 percent after falling 0.2 percent.
Big Picture
Sales declined in six of 13 major retail categories in March. While household outlays are projected to cool in the first quarter, steady hiring, healthier household balance sheets and more optimistic consumers will probably underpin spending. A confidence report Thursday showed a favorable buying climate for big-ticket items. Tax refunds, which had been delayed earlier this year, may help provide more wherewithal for consumers in the months ahead.
Economist Takeaway
“As with last year, we expect the first quarter (and especially March) weakness in auto sales to be short-lived as the job market expands. Moreover, gasoline prices have risen again in April,” David Berson, chief economist at Nationwide, said in a note after the report. “Consequently, we look for consumer spending to rebound in April and following months.”
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