US Retail Sales Surge 1.5% in February Despite Disappointing January Revision

Strategic Insights -

February's jump in US retail sales, reported by the Commerce Department, snapped a one-month slide that followed nine straight monthly gains, indicating a consumer spending rebound after a snowy and bitterly cold January. While the government revised January's retail sales downward to a 1.6 percent decline, the sharp gain in February boosted total sales to $181.62 billion. However, the downward revision and constricted sales growth in January paint a disappointing picture for the first two months of the year. Meanwhile, the Commerce Department reported a significant drop in inventories of US wholesalers in January, with stockpiles falling 0.4 percent to $215.6 billion, while sales increased 0.8 percent to $162.7 billion.

Key Takeaways:

  • US retail sales jumped 1.5 percent in February to $181.62 billion, ending a one-month decline.
  • The Commerce Department revised January's retail sales downward to a 1.6 percent decline from the original 0.5 percent decline.
  • Inventories of US wholesalers fell 0.4 percent to $215.6 billion in January, while sales increased 0.8 percent to $162.7 billion.
  • The Federal Reserve reported that the US economy expanded moderately in January and February, despite winter weather, with limited upward pressure on prices in a few industries.
  • Defense contractor Martin Marietta Corp. and rival Northrop Corp. engaged in a hostile bid for Grumman Corp., with Martin Marietta's bid valued at $1.94 billion and Northrop's at $2.04 billion.
  • A third defense contractor, Raytheon Co., announced a company-wide restructuring plan that could result in 4,400 layoffs, or 7 percent of its total worldwide population.
  • Challenger, Gray & Christmas reported 68 percent fewer job reductions announcements in February than in January, with 34,618 employees laid off in February compared to 108,946 in January.

Statistics:

  • US retail sales in February: $181.62 billion.
  • January retail sales revision: -1.6 percent (from -0.5 percent).
  • Inventories of US wholesalers in January: $215.6 billion (down 0.4 percent from December).
  • Sales of US wholesalers in January: $162.7 billion (up 0.8 percent from December).
  • Number of people laid off in February: 34,618.
  • Number of people laid off in January: 108,946.

Sources:

  • UPI Business Writer NEW YORK The government said consumers came out of hibernation and went on a shopping binge during February, following a snowy, bitter-cold month of January.
  • The Commerce Department reported US retail sales jumped 1.5 percent in February to $181.62 billion.
  • The Federal Reserve's 'Beige Book' report on the economy indicated the US economy expanded moderately in January and February, despite winter weather.
  • Martin Marietta Corp. and Northrop Corp. engaged in a hostile bid for Grumman Corp.
  • Raytheon Co. announced a company-wide restructuring plan that could result in 4,400 layoffs.
  • Challenger, Gray & Christmas reported 68 percent fewer job reductions announcements in February than in January.