Another Drop in US Retail Sales – Harsh Weather Speculated
The United States Commerce Department Report released on Thursday indicated another drop in US retail sales in the month of February. Consumer spending reduced at stores, and restaurants with the lowest number of cars bought in February.
There was a 0.6 percent reduction in retail sales in month of February and a 0.8 percent reduction in the month of January. Retail purchasing was flat if ephemeral categories like gas, vehicles, restaurants and building materials were not included, stated the United States Commerce Department.
Harsh weather conditions are speculated to be the cause of the drop in retails sales last month. This is not far fetched and could really be a major factor, as snow storms coupled with very cold weather can discourage many people from coming out of their homes to purchase items in a store or restaurant.
Sales at gas stations increased in the month of February more than previous data since May 2014. However, the reduction in oil prices also reduced sales in the month of December 2014 and January 2015.
The United States Labor Department brought the good news on Thursday of great reduction in the data indicating those applying for unemployment claims.
Firms in the United Sates had no addition to stockpiles in January (this will be for two straight months now) as there was a six years lowest decline in total sales of business.
For six months now there has been a consistent decline in sales, including the 2 percent sales drop in January and this has been the largest ever apart from the 2.7 percent decline of sales during the worst moments of the recent recession in March 2009.