U.S. Retail Sales Rose 0.6% in March -- Update
April 16 2018 - 9:34AM
Dow Jones News
By Sarah Chaney
Spending at U.S. retailers bounced back in March, but the
broader trend in consumer spending shows only moderate growth
despite a solid labor market and growing worker paychecks.
Retail sales -- a measure of outlays at stores, restaurants and
websites -- increased a seasonally adjusted 0.6% in March from the
prior month, the Commerce Department said Monday, beating economist
expectations.
Part of the rise in retail sales was an expected bounceback
after three consecutive months of weak readings. In February, sales
dropped 0.1% after a 0.2% drop in January and a 0.1% decline in
December.
"Retail sales rose for the first time in March, but the report
was nothing to write home about," wrote Gus Faucher, chief
economist at PNC Financial Services Group, in a note to clients.
"Consumer spending is growing at a moderate pace."
A bump in auto sales helped drive the overall rise in retail
spending. Excluding vehicles, sales were up 0.2% last month.
Excluding both autos and gasoline, sales rose 0.3% in March from
the prior month.
Overall retail sales edged up only 0.2% in the first quarter
compared with the fourth quarter. Excluding autos, the quarterly
change showed stronger growth, clocking a 0.7% increase.
Data on retail sales can be volatile from month to month, aren't
adjusted for inflation and don't include spending on most services
such as housing and health care.
Consumer spending is the main driver of the U.S. economy,
accounting for more than two-thirds of economic output.
A strong labor market, buoyant consumer confidence and the
recent tax cuts offer a favorable outlook for spending patterns,
said Mark Frissora, chief executive at gambling behemoth Caesars
Entertainment Corp., in a March earnings call with analysts.
"At the macro level, we're seeing both positive trends in
consumer sentiment and spending," Mr. Frissora said. "Unemployment
levels are at historic lows and incomes are rising, while the
effects of U.S. tax reform are expected to further strengthen
discretionary consumer spending."
Gasoline-station sales fell 0.3% in March from the prior month,
according to the Commerce Department report. Moves in that category
often reflect changes in fuel prices.
Sales were uneven across other segments last month. Sales
improved at furniture, electronics and health and personal care
stores while spending at building-materials and clothing stores
fell.
Sales at department stores dropped 0.3% last month and were down
0.9% from March 2017. Sales at nonstore retailers, such as
online-shopping outlets, were up 0.8% from February and rose 9.7%
from a year earlier.
Write to Sarah Chaney at sarah.chaney@wsj.com
(END) Dow Jones Newswires
April 16, 2018 10:19 ET (14:19 GMT)
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