Retail sales in US rebound less than expected
US consumer spending warmed slightly in February, according to government data released on Thursday, with retail sales regaining ground on the back of higher temperatures. Retail sales bounced 0.6 percent last month to US$700.7 billion after sliding 1.1 percent in January, said the Commerce Department. The January decline was the biggest in almost a year, causing some concern as a significant spending slowdown could pour cold water on hopes that consumption continues being a key economic driver. From a year ago, retail sales were up 1.5 percent, said the Commerce Department. Sales at motor vehicle and parts dealers helped to support the uptick, rising 1.6 percent between January and February. Excluding autos, retail sales rose by a smaller magnitude at 0.3 percent. Meanwhile, spending at furniture stores slipped, while sales at restaurants and bars were still up 0.4 percent. Petrol station sales rose 0.9 percent in February. Analysts are expecting consumption in the first quarter will grow at a slightly slower rate than in the final months of 2023. If so, that would "quash fears – for a while, at least – of a hard landing triggered by January's retail data," said Pantheon Macroeconomics in a recent report. "Still, the case for a gradual but sustained slowdown in growth in consumers' spending from 2023's robust pace is persuasive," Pantheon warned. (AFP)