Thursday 14 April 2005

Weak US retail sales in March

Retail sales in the US in March were weaker than expected.

March Retail Sales Weaker Than Expected
Weak March U.S. retail sales dimmed confidence on Wednesday in the strength of the economy, prompting investors to bet the Federal Reserve may not have to raise interest rates as sharply as some feared. The Commerce Department said retail sales rose 0.3 percent last month, less than half of the 0.7 percent predicted by Wall Street, after a sharp downturn in department store and clothing sales...

Excluding autos, which can swing sharply from month to month, retail sales advanced just 0.1 percent -- the weakest reading since April 2004 -- compared with forecasts for a 0.5 percent gain... Stripping out both gasoline and motor vehicle sales, retail sales actually shrank 0.1 percent, suggesting households indeed felt the pinch of soaring gasoline prices as crude oil costs advanced toward record highs.

Are we finally approaching the end of the US consumer boom?

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