Nice Economic Recovery: Retail sales decline 0.2 percent
Thursday, April 12, 2001 09:40 AM EDT
WASHINGTON, Apr 12, 2001 (United Press International via COMTEX) -- The
Commerce Department said Thursday that U.S. retail sales fell 0.2 percent in
March after an unchanged performance in February and jumping 1.3 percent in
January.
Most economists on Wall Street were expecting retail sales to rise by 0.1
percent during the month.
The Commerce Department said excluding automobiles, retail sales slipped 0.1
percent during the month after falling 0.2 percent in February and climbing 1.3
percent in January.
Economists were expecting sales excluding autos to rise 0.2 percent during the
month.
The report is important because consumer spending accounts for two-thirds of
economic output in the United States. Consumer spending, which rose in the first
quarter of last year at the fastest pace in 17 years, has since cooled amid a
broader slowdown in the U.S. economy.
Analysts said the latest reading on consumer spending may put additional
pressure on the Federal Reserve to cut interest rates before its May 15 meeting.
In its latest report, the Commerce Department said durable goods, which are
items meant to last three or more years, sank 0.7 percent in March, after rising
0.5 percent in February.
Sluggish sales of building materials led the decline, falling 1.2 percent. Auto
sales at dealerships fell 0.8 percent, and furniture and home furnishing sales
dropped 0.7 percent.
The government agency said purchases of non-durable goods inched up 0.1 percent
in March, lifted by a 0.4 percent rise in sales in department stores.
Sales at drug stores were up 1.5 percent, and restaurants increased sales 0.6
percent. However lower gas prices depressed sales at service stations 2.0
percent, and grocery store sales slipped 0.2 percent, the Commerce Department
said.
Copyright 2001 by United Press International.
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