March 2013 US retail sales drop unexpectedly, decline most in 9 months, Feb. 2013 revised down by .1, Jan. 2013 revised .3 lower

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Economists predicted unchanged from Feb. 1.0, revised down from 1.1.

4/12/13, "Retail Sales in U.S. Decline by Most in Nine Months," Bloomberg, A. Kowalski

"Retail sales in the U.S. dropped in March by the most in nine months, pointing to a slowdown in consumer spending as the first quarter drew to a close.

Purchases fell 0.4 percent, the biggest setback since June, after jumping 1 percent in February, according to Commerce Department figures issued today in Washington. Consumer sentiment took a hit this month after employment cooled, a report from Thomson Reuters/University of Michigan also showed.

The sales data prompted economists to trim consumer- spending forecasts from what was projected to be the best quarter in two years. Gains in hiring and wages will be needed to ensure any slowdown proves temporary as federal budget cuts and an increase in the payroll tax restrain the expansion....

Survey Results

The median forecast of 85 economists surveyed by Bloomberg called for an unchanged reading in March retail sales. Estimates ranged from a decline of 0.6 percent to an advance of 0.7 percent.

The Commerce Department revised the February reading down from an initially reported 1.1 percent increase, and also cut January to show a 0.1 percent drop from a previously reported 0.2 percent gain. 

Seven of 13 major categories showed declines last month, led by a 1.2 percent decrease at general merchandise outlets, which includes department stores, and a 1.6 percent drop at electronics dealers. Sales at automobile and parts dealers fell 0.6 percent after a 1.3 percent gain the prior month, today’s report showed. Industry figures, which are the ones used to calculate gross domestic product, showed car and light truck sales dipped in March, falling to a 15.2 million annual rate from 15.3 million the prior month, according to Ward’s Automotive Group. The first quarter sales average was the highest since 2008. ...

Part of the reason may also be that employment is slowing. Payrolls grew by 88,000 last month, the smallest increase since June, the Labor Department said on April 5. Average hourly earnings were unchanged in March from the prior month, the weakest showing since October."...



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