The 0.1% m/m drop in headline retail sales in February was partly driven by weakness in autos and a price-related drop back in gasoline sales, but underlying sales were nevertheless subdued and suggest that real consumption growth slowed in the first quarter. That deceleration is particularly disappointing given the boost to disposable incomes coming from the tax cuts, which arrived in February.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.