U.S. Outlook: Retail sales slip again in March

Posted By Scott Anderson In Economic Outlook | 1 Comment

March retail sales came in lower than expected, down 0.3%, ending a disappointing first quarter for consumer spending.

graph showing trends in personal savings rate over last several years. [1]Despite the lackluster start, it is too soon to throw in the towel on the U.S. consumer for 2016.

For more details, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on April 15.

Key observations:
  • Possible reasons for the retail sales slowdown so far this year include financial market volatility earlier in the year and uninspiring political rhetoric from the presidential candidates.
  • The bulk of the weakness in March retail sales data came from weak auto sales.
  • The greatest positive contributions to consumer spending in March came from building materials and garden equipment.
  • The subdued growth in spending is likely to reverse with greater consumer demand in the second quarter.
Click here to read my full report. [2]

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URL to article: https://changematters.bankofthewest.com/2016/04/15/u-s-outlook-retail-sales-slip-march/

URLs in this post:

[1] Image: http://blog.bankofthewest.com/wp-content/uploads/2016/04/graph_savingsrate_041516.jpg

[2] Click here to read my full report.: http://blog.bankofthewest.com/wp-content/uploads/2016/04/BankoftheWest_USOutlook_04_15_16.pdf

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