Consumers spend much slower than they did in February, and although basic readings show that sales are growing at a solid rate despite concerns about slowdowns and rising inflation.
retail According to the Department of Commerce’s Advanced Reading, it rose 0.2% this month, down 1.2% from the previous month’s decline, and below the Dow Jones estimate of 0.6%. Excluding cars, an increase of 0.3%, in line with expectations.
Sales were adjusted for seasonal factors, but no inflation was adjusted for inflation. Prices rose 0.2% for the month, according to a previous Labor Department report, indicating that spending is related to the pace of inflation.
The so-called control group divested the non-core sector and fed directly to GDP, which was better than expected by 1%.
“It’s not a good report, but despite how pessimistic consumers are about the future, they’re still in the positive territory,” said Robert Frick, an economist at Naval Federal Credit Union. “However, the main factor in consumer spending is consumer revenue, which has grown at a good rate and has made an impressive leap in January.”
Online spending helped boost sales this month, while non-store retailers reported an increase of 2.4%. Health and personal care showed a 1.7% increase, while food and beverage sales increased by 0.4%.
On the downside, bars and restaurants reported a 1.5% drop, while in the price of pumps, gas stations fell by 1%.
Overall sales grew 3.1% year by year, better than the 2.8% inflation rate measured by the Consumer Price Index.
Another frustrating note in the report is a sharp revision of January, initially reported a 0.9% drop.
The press release emerged within growing concerns about economic growth, especially as President Donald Trump engages in an aggressive tariff battle with leading trading partners. Economists fear tariffs will drive inflation and slow the economy.
“When consumers and businesses are unable to make informed decisions about the future of the economy and where they are,” said Elizabeth Renter, senior economist at Nerdwallet, a personal finance website. “At present, direct economic policies and extensive federal policies with indirect economic implications are flooding, making informed decisions difficult.”
Some indicators, such as the Atlanta Federal Reserve’s GDPNOW economic data tracker, suggest that growth in the first quarter could be negative, although a stable reading of controlling retail could lead to an upward revision later today.
In other economic news on Monday, the New York Fed’s measure of factory activity in the region fell unexpectedly sharply in March.
The Empire State Manufacturing Survey released this month’s -20 readings, which represents the difference between companies that see a contraction of expansion. The figure represents a 5.7 drop in February, well below the estimate of -1.8.
The slideshow of new orders fell sharply, with the index falling to -26.3, down 14.9 points. The goods were also greatly closed. Regarding inflation, the price index paid and received also rose.
