{"id":2177030,"date":"2024-02-15T11:42:02","date_gmt":"2024-02-15T16:42:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-retail-sales-tumble-in-january-weekly-jobless-claims-fall\/"},"modified":"2024-02-15T11:48:24","modified_gmt":"2024-02-15T16:48:24","slug":"us-retail-sales-tumble-in-january-weekly-jobless-claims-fall","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-retail-sales-tumble-in-january-weekly-jobless-claims-fall\/","title":{"rendered":"US retail sales plummet in January; weekly jobless claims decline"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fus-retail-sales-tumble-in-january-weekly-jobless-claims-fall%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2177030&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<p><strong>February 15, 2024 \u2013 7:53 AM PST<\/strong><\/p>\n<p><strong>WASHINGTON (Reuters)\u2062 \u2013 U.S.\u2063 retail sales fell\u200d by \u200cthe \u2062most in nearly a year in January, but economists cautioned against reading too much into the decline, noting that winter storms as well as technical factors had distorted the data.<\/strong><\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>The\u200d larger-than-expected drop in retail \u200dsales reported \u200cby the Commerce Department on Thursday also reflected \u2062a sharp fall in \u2064receipts at services stations because of lower gasoline \u2063prices. Consumer spending remains supported by a fairly healthy labor market, which is keeping wage\u2063 growth elevated.<\/p>\n<p>\u201cIt was a weak start to the year for consumers shopping at the\u2063 malls, but the harsh winter weather effect looms large,\u201d said Christopher Rupkey, chief economist at\u200d FWDBONDS in New York.<\/p>\n<p>Retail sales dropped 0.8% last month, the\u2064 biggest drop since February 2023, the Commerce Department\u2019s Census Bureau said. \u200dData for \u200bDecember was revised lower to show sales rising 0.4% instead of 0.6% as previously reported.<\/p>\n<p>Economists polled by Reuters had forecast retail \u200dsales \u2064dipping 0.1%.\u200b Retail sales are mostly goods and are not adjusted for inflation. December sales were partially flattered by generous seasonal factors, the model the \u200cgovernment uses to \u200cstrip out\u200b seasonal fluctuations from the data.<\/p>\n<p>Unadjusted retail sales typically fall in January. The\u200b seasonal factors were less supportive for this January compared to previous years, resulting in the large drop in adjusted sales last month. Economists had cautioned before the release of the\u200c data not to read\u2062 too much into \u2062any sharp drop.<\/p>\n<p>\u201cIt \u200bis hard to\u200d know exactly what the \u2018right\u2019 seasonal factor\u2062 is for a\u2064 given month but the seasonal factors associated with\u2062 December 2023 and January\u2062 2024 look unusual relative to the ones associated with these months in earlier years,\u201d said Daniel Silver, an economist at JP Morgan in New York. \u201cThe\u200b individual seasonally adjusted changes for\u200c these months likely should be discounted when\u200b trying to\u200c determine the trend for the data.\u201d<\/p>\n<h2 class=\"wp-block-heading\">BROAD WEAKNESS<\/h2>\n<ul>\n<li>\n<h3>Receipts at motor vehicles and parts\u2064 dealers plunged\u200d 1.7%.<\/h3>\n<\/li>\n<li>\n<h3>Sales at building material and garden equipment outlets tumbled 4.1%, likely because of winter storms that\u2063 blanketed much of the country in mid-month.<\/h3>\n<\/li>\n<li>\n<h3>Gasoline station\u200d receipts dropped 1.7%\u200b as gasoline prices declined. \u2064Online sales dropped 0.8% after surging 1.4% in December. Sales at electronics and appliance outlets fell 0.4%, while those at clothing stores declined 0.2%.<\/h3>\n<\/li>\n<li>\n<h3>But sales at food services and drinking places, the only services component in the \u200breport, increased 0.7%. Economists view dining out as a key indicator of household finances. \u2064Furniture stores receipts surged 1.5%.<\/h3>\n<\/li>\n<\/ul>\n<p>Though momentum is\u2064 likely to\u2064 slow this year, consumer spending remains healthy, thanks to a\u2064 resilient \u2063labor market and rising household purchasing power as \u200binflation subsides.<\/p>\n<p>A separate report from the Labor Department on Thursday showed\u200b initial claims for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/these-21-states-are-opting-out-of-enhanced-unemployment-benefits-heres-what-you-need-to-know\/\" title=\"These 21 States Are Opting Out Of Enhanced Unemployment Benefits. Here\u2019s What You Need To Know.\">state unemployment benefits<\/a> fell 8,000 to\u2064 a seasonally adjusted 212,000 for the\u200b week ended Feb.\u2062 10.<\/p>\n<p>Claims are \u200cbouncing around low\u200c levels\u2062 despite a\u2064 recent rush of\u200b high-profile layoffs, \u2062mostly in the technology and media sectors. Economists had forecast 220,000 claims for the latest week. Companies are mostly reluctant to layoff workers after struggling to fill jobs during and after the COVID-19 \u2064pandemic.<\/p>\n<p>The number of people receiving benefits\u200c after an initial week of aid, \u200ba proxy for hiring, increased 30,000 to 1.895 million during \u200dthe week ending \u200bFeb. 3, the claims report \u200dshowed.<\/p>\n<p>Retail sales excluding automobiles,\u200d gasoline, building materials and food services decreased 0.4% in January. The so-called\u2063 core retail \u2062sales measure corresponds most closely with the consumer spending component of GDP.<\/p>\n<p>Core \u2064sales for December were revised down to show them rising 0.6% instead of the \u200dpreviously reported 0.8%. Economists are forecasting strong\u2063 services \u2064spending growth\u2063 in \u2063January, which should keep overall consumer spending afloat.<\/p>\n<p>Consumer spending, which accounts for more \u200bthan two-thirds\u2064 of U.S. economic activity, increased at a brisk clip in the fourth quarter, contributing to the \u2064economy\u2019s 3.3% annualized growth pace. The economy expanded at a 4.9% rate \u2062in\u2064 the July-September quarter.<\/p>\n<p><sup>Reporting by Lucia Mutikani; Editing by Chizu Nomiyama<\/sup><\/p>\n<\/p>\n<div id=\"rc-widget-10bad2\" data-rc-widget data-widget-host=\"habitat\" data-endpoint=\"\/\/trends.revcontent.com\" data-widget-id=\"278641\"><\/div>\n<p class=\"dpsp-share-text\" style=\"margin-bottom:10px\"> \t\t \t\tShare this post!\t<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>A shooting \u200drocks the Chiefs\u2019 Parade\u200b in Kansas City, an effort to stop the \u2064CIA and FBI from warrantless spying is derailed and Georgia \u2064sends troops to clean up\u2064 Mayorkas\u2019 mess.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Catholics around the world gather to\u200d partake in Ash Wednesday, which marks \u2062the beginning of the Lenten \u200dseason<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Delving into a pressing issue \u2062that \u2063directly impacts our nation\u2019s education\u200c system: the intersection of an unsecured border and education.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>with \u2062Robert Davi<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Shares of smaller AI firms rallied after Nvidia disclosed stake in them.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Nvidia briefly displaced \u2063Alphabet as the U.S. stock \u2062market\u2019s third most valuable company.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Hackers from Russia, China,\u200d and Iran have been \u200cusing tools from OpenAI to hone their skills and trick\u2062 their targets.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Nvidia\u00a0briefly surpassed Amazon.com Inc\u00a0in\u2062 market\u2064 capitalization \u200bon Monday.<\/strong><\/p>\n<\/p><\/div>\n<p> rnrn  <\/p>\n<h2> Despite \u2064the decline\u2062 in \u200dsales, what factors continue to support consumer spending in the U.S<\/h2>\n<p><span>  \u2064An \u2062two-thirds\u2063 of U.S. economic activity, remains a crucial driver of economic growth. \u2062Therefore, any fluctuations in retail sales data are \u200cclosely watched by\u200b economists and \u200cpolicymakers alike. <\/p>\n<p>The latest \u200dreport from the \u200bCommerce Department on\u200c Thursday revealed that U.S. retail sales fell\u2063 by the most in nearly a year in January. However,\u200c economists caution against\u200c reading\u2063 too much into this decline, \u2064as there are some factors that\u200b have\u2062 distorted\u200b the data.<\/p>\n<p>One major factor contributing to\u2064 the \u200clarger-than-expected drop in retail sales is \u200cthe\u2062 persistent \u200bwinter storms that have affected many parts of the country.\u200c With harsh\u200d weather conditions, consumers are less likely\u2062 to venture out and \u2063engage in shopping activities. This is particularly evident in the sharp \u200dfall in \u2062receipts\u200c at \u2062service stations due\u2064 to lower gasoline prices.<\/p>\n<p>Despite the decline \u2064in sales, consumer\u200d spending \u2063is still being \u2064supported by a fairly \u200dhealthy labor market. Wage \u200bgrowth remains \u2062elevated, contributing to sustained \u200bconsumer purchasing power. Christopher Rupkey, the chief economist at FWDBONDS \u200din New \u2062York, acknowledges the weak start to the year\u200d for consumers but attributes it largely to \u200cthe adverse effects of winter weather.<\/p>\n<p>The Commerce Department&#8217;s Census Bureau\u200c reported a 0.8% drop in retail sales last month, marking the largest decline since February 2023.\u200d Additionally, December&#8217;s sales figures \u200bwere revised lower, showing sales rising only 0.4% \u2064instead \u200dof the previously reported 0.6%.\u200d It is important to note that retail sales are mostly goods\u200d and are not adjusted for inflation. The generous\u2063 seasonal\u200c factors during \u200dDecember\u2063 also contributed \u2064to the apparent rise in sales,\u200c but those factors\u200b were less supportive in January, leading \u2062to\u200b the significant drop in adjusted sales.<\/p>\n<p>Economists had already\u2062 cautioned against over-analyzing any \u2064sharp declines in retail\u200c sales, given the unusual seasonal factors associated with December 2023 and January 2024. Seasonally adjusted changes \u200dfor these\u200c months may not accurately \u2062represent \u2062the\u2064 overall trend.<\/p>\n<p>Looking at specific \u2064sectors, motor vehicles and parts dealers experienced a 1.7% plunge in receipts. Similarly, building material and garden equipment outlets saw a significant 4.1% decline, which\u200b can be attributed to winter storms. Gasoline station receipts dropped\u200b 1.7%\u200b due to\u200d declining gasoline \u2062prices, while online sales dropped 0.8% after a surge in December. Sales at electronics and appliance outlets and clothing stores \u200dalso declined.<\/p>\n<p>However, there were some \u200dbright spots in the report. Sales\u2064 at food services\u200b and drinking places,\u2062 which\u200c serve as a key indicator \u2062of household finances, increased \u2063by 0.7%. Furniture store\u2064 receipts also saw a notable surge\u2063 of\u200c 1.5%.<\/p>\n<p>Despite the overall weakness in retail sales, \u2063economists believe that consumer spending will remain healthy due to a resilient\u2064 labor\u200d market\u200d and\u200b rising \u200dhousehold \u2064purchasing power \u2062as inflation subsides. A separate report\u2062 from the Labor Department revealed\u200b a \u2062decrease\u2063 in \u200cinitial\u2062 claims for\u2064 state unemployment benefits, indicating \u2064a relatively\u2063 low level of layoffs despite high-profile layoffs in certain sectors.<\/p>\n<p>Furthermore, economists \u2063are predicting strong\u200d services spending growth in January, which \u2062should help sustain overall consumer spending. Retail sales excluding automobiles, gasoline, building \u200bmaterials, \u2062and \u200bfood services decreased by 0.4% in January. This so-called core retail sales measure \u200caligns most closely with the consumer \u200bspending component of GDP.<\/p>\n<p>In conclusion, while the\u200d decline in U.S. retail\u200d sales \u2064in January may seem \u200bconcerning at first glance, it is important to consider the external \u200cfactors that have contributed to this decline. \u2063Winter storms\u200b and technical factors have\u200c distorted the data, and economists advise against overreacting\u200b to this\u200b temporary\u2062 setback. Consumer\u200c spending remains supported by a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-chair-no-interest-rate-hikes-until-inflation-spike\/\" title=\"Federal Reserve Chair: No interest rate hikes until inflation spike\">strong labor market<\/a> and\u200b rising \u200dhousehold purchasing power, indicating a more positive outlook\u200b for the economy moving forward.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Reuters on February 15, 2024, at 7:53 AM PST, raised concerns among economists. However, they advised against overinterpreting the decline due to the influence of winter storms and technical factors, emphasizing the need for caution when analyzing the data<\/p>\n","protected":false},"author":1911,"featured_media":2177031,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/c3.oann.com\/wp-content\/uploads\/2024\/02\/3AQMVGNBKRPSLER4GLYU6CCW3U.webp","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2177030","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/c3.oann.com\/wp-content\/uploads\/2024\/02\/3AQMVGNBKRPSLER4GLYU6CCW3U.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2177030","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2177030"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2177030\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2177031"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2177030"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2177030"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2177030"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}