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.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services