Retail Sales in U.S. Increase for First Time in 3 Months
Source: Bloomberg
By Victoria Stilwell Mar 13, 2014 12:32 PM ET
Sales at U.S. retailers rose in February for the first time in three months, claims for jobless benefits dropped last week and consumer confidence improved, pointing to an economy regaining traction after a harsh winter slowed demand even more than previously estimated.
The 0.3 percent advance in purchases followed a 0.6 percent drop in January that was larger than initially reported, the Commerce Department in Washington said. Unemployment claims unexpectedly fell to a more than three-month low and consumer sentiment rose to the second-highest level since August.
The confidence report showed those at the lowest end of the pay scale were becoming less pessimistic, a sign the improving job market will help broaden gains in spending. The extent of the economic damage inflicted by the weather remains open to debate, which means Federal Reserve policy makers will probably continue to trim monthly bond purchases at a measured pace when they meet next week.
“We’ll see a little bit more traction on the consumer side as the weather improves and people get a little bit more willing to leave the house,” said Russell Price, senior economist at Ameriprise Financial Inc. in Detroit and the best forecaster of retail sales over the past two years, according to data compiled by Bloomberg. Still, the gain in February “has to be considered against the negative revisions to January and December.”
Read more: http://www.bloomberg.com/news/2014-03-13/retail-sales-in-u-s-increase-for-first-time-in-three-months.html