Consumers have severely restricted their expenses in January, which according to a report by the trade department on Friday shows a potential weakening of economic growth.
For the month, retail turnover rose by 0.9% compared to a profit of 0.7% in December, even worse than the estimate of Dow Jones for a decrease of 0.2%. The sales are adjusted for a seasonality, but no inflation for a month in which prices rose by 0.5%.
With the exception of cars, prices fell by 0.4%, also far away from the consensus forecast for an increase of 0.3%. A “control” measurement, which uses several not important categories and pay directly in calculations for gross domestic products after an increase in 0.8% revised upwards.
Since consumer expenses are about two thirds of all economic activities in the United States, sales in the first quarter indicate a potential weakening of growth.
The receipts for sporting goods, music and bookstores fell 4.6% per month, while online sales offices decreased by 1.9% and motor vehicles and parts expenses decreased by 2.8%. Both gave petrol stations as well as food and drinking companies by 0.9%.
The stock exchange futures in a slightly negative area after the release, while the financial fees have lost the ground. Dealers increased the bets that the Federal Reserve could reduce interest rates again in June.
“The drop was dramatic, but several mitigating factors show that there is no reason for the alarm. Part of it can be able to get a car sales in January after an unusual increase in December due to incentives for fat District, “said,” said, “said,” said, “said,” said, “said,”, “said,” said, “said,” said, ” “Said,” said, “said,” said, “,” said, “said,” said, “said,” said, “said,” said, ” said “, said,” said, “said,” said “Robert Frick, corporate economist at Navy Federal Credit Union. “Especially when you consider that December has been revised, the roll average of consumer expenses remains solid,” added Frick.
Inflation remains the 2% giel of the Fed. The consumer price index recorded a profit of 0.5% in January and showed an annual inflation rate of 3%. However, the producer price index, a proxy for wholesale prices, showed some softening from the most important pipeline inputs.
In other business news on Friday, the Bureau of Labor Statistics reported that import prices corresponded to 0.3% in January, which corresponds to expectations for the largest one -month step since April 2024. Import prices rose by 1.9% on a previous year.
Fuel prices rose by 3.2%per month, as did the greatest profit since April 2024. Food, feed and beverage costs rose by 0.2%in December after an increase of 3%.
Export prices also rose and rose by 1.3%.
Comments are closed.