James Knightley, chief international economist at ING, suggests that the US retail sales numbers for February are very disappointing with headline sales falling 0.2% month on month versus expectations of a 0.2% increase.
Key Quotes
“There have been upward revisions to the history, most notable for January which is now reported as a 0.7%MoM gain versus the 0.2% figure initially reported.”
“There are major revisions throughout the report. The ‘control’, that better reflects the consumer spending patterns within GDP by excluding volatile items such as gasoline station sales, autos and building materials & garden equipment, saw sales fall 0.2% versus expectations of a 0.3% rise. However, January’s figure was revised up to +1.7% from +1.1%.”
“This shouldn’t have a major influence on the outlook for Federal Reserve policy. Officials continue to highlight their patient stance, and we expect that will continue.”
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