Sales at retailers rose less than forecast in January, showing it will be difficult for American consumers to sustain last quarter’s pickup in spending without bigger gains in employment.
Purchases increased 0.3 percent, the smallest gain since a drop in June, according to Commerce Department figures today in Washington. Other reports showed manufacturing in the New York area accelerated and confidence among home builders stagnated.
The sales data also indicated winter snowstorms may have played a role in the slowdown as Americans stayed away from restaurants and home-improvement stores. While Gap Inc. and Macy’s Inc. were among retailers topping analysts’ estimates as promotions lured post-holiday shoppers, rising food and gasoline prices may have caused households to cut back on non-essentials.
“There is some momentum in consumer spending, but it’s not particularly robust,” said Kevin Logan, chief U.S. economist at HSBC Securities USA Inc. in New York, who correctly forecast the gain. “Things are recovering, but they’re not really healthy,” he said, and in addition, “the severe weather last month curtailed all kinds of outdoor activity.”
The Standard & Poor’s 500 Index retreated from a 32-month high after the reports, falling 0.4 percent to 1,327.35 at 11:54 a.m. in New York. The S&P Supercomposite Retailing Index decreased 0.1 percent.
Sales were projected to increase 0.5 percent based on the median forecast of 79 economists in the Bloomberg News survey. Estimates ranged from a gain of 1.1 percent to a drop of 0.5 percent. The December increase in sales was revised down to 0.5 percent from the 0.6 percent previously estimated.
Purchases increased 0.3 percent, the smallest gain since a drop in June, according to Commerce Department figures today in Washington. Other reports showed manufacturing in the New York area accelerated and confidence among home builders stagnated.
The sales data also indicated winter snowstorms may have played a role in the slowdown as Americans stayed away from restaurants and home-improvement stores. While Gap Inc. and Macy’s Inc. were among retailers topping analysts’ estimates as promotions lured post-holiday shoppers, rising food and gasoline prices may have caused households to cut back on non-essentials.
“There is some momentum in consumer spending, but it’s not particularly robust,” said Kevin Logan, chief U.S. economist at HSBC Securities USA Inc. in New York, who correctly forecast the gain. “Things are recovering, but they’re not really healthy,” he said, and in addition, “the severe weather last month curtailed all kinds of outdoor activity.”
The Standard & Poor’s 500 Index retreated from a 32-month high after the reports, falling 0.4 percent to 1,327.35 at 11:54 a.m. in New York. The S&P Supercomposite Retailing Index decreased 0.1 percent.
Sales were projected to increase 0.5 percent based on the median forecast of 79 economists in the Bloomberg News survey. Estimates ranged from a gain of 1.1 percent to a drop of 0.5 percent. The December increase in sales was revised down to 0.5 percent from the 0.6 percent previously estimated.
No comments:
Post a Comment