Weak U.S. Retail Sales Point to Slowing Economy

Date: 15 May 2019 - 21:27

News ID: ۶۶۰۳۶

WASHINGTON (Reuters) - U.S. retail sales unexpectedly fell in April as households cut back on purchases of motor vehicles and a range of other goods, pointing to a slowdown in economic growth after a temporary boost from exports and inventories in the first quarter.
The economy's outlook was also dimmed by other data on Wednesday showing a decline in industrial production last month. The weak reports came in the midst of an escalating trade war between the United States and China, which has triggered a massive stock market sell-off.
Economists have warned the trade tensions could undercut growth. Following the retail sales report, some economists trimmed their second-quarter growth estimates.
The Commerce Department said retail sales slipped 0.2% last month. Data for March was revised slightly up to show retail sales surging 1.7%, the largest increase since September 2017, instead of the previously reported 1.6% jump.
Economists polled by Reuters had forecast retail sales gaining 0.2% in April. Retail sales in April increased 3.1% from a year ago.
U.S. financial markets were little moved by the data.
Excluding automobiles, gasoline, building materials and food services, retail sales were unchanged in April after an upwardly revised 1.1% acceleration in March. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product.
They were previously reported to have soared 1.0% in March. Consumer spending accounts for more than two-thirds of economic activity. While March's strong core retail sales set consumer spending on an upward trajectory in the second quarter, last month's weakness suggested the pickup in consumption could be moderate.