US retail sales strong in February; rising gasoline prices will hurt spending
US retail sales increased by 0.6% in February, the largest increase in seven months, driven by motor vehicle purchases and warmer temperatures. However, surging gasoline prices due to the war in the Middle East are expected to crimp spending in the months ahead, potentially offsetting the boost to consumer spending from tax cuts.
US retail sales rose 0.6% in February, the largest increase in seven months. The increase was driven by motor vehicle purchases and warmer temperatures. However, surging gasoline prices due to the war in the Middle East are expected to hurt spending. Retail sales excluding automobiles, gasoline, building materials, and food services increased 0.5%. The conflict has sent global oil prices surging over 50%. Economists warn that a prolonged war could weigh on growth in the second quarter.
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