While retail sales in most sectors was flat, auto sales were a drag this January, registering a 2.1 percent drop. (UPI/John Angelillo) |
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WASHINGTON, Feb. 13 (UPI) -- Sales at U.S. retailers fell a seasonally adjusted 0.4 percent, suggesting that cold weather was not the only reason January saw lethargic sales numbers.
The dip in sales could point to a slowing of the economy toward the end of last year. Economists polled by MarketWatch had expected only a small 0.1 percent drop in sales. The Commerce Department also revised December's retail sales numbers from a 0.2 percent rise to a 0.1 percent drop during the holiday season.
Motor parts and automobiles led the way with a 2.1 percent drop in sales, while sales across other sectors were flat. Sales also declined at clothing stores, home-furnishing outlets, pharmacies, bars, restaurants and department stores.
Apart from the bad weather, which does dull sales in January, the lower than expected numbers for both January and December suggest that consumers, who are the main drivers of retail sales, are reluctant to splurge and are indicative of an economy still struggling to recover.
At the same time, more Americans than expected filed for unemployment benefits, as jobless claims increased by 8,000 to 339,000, up from 331,000 in the previous week. This is above the estimates of 52 economists polled by Bloomberg, who expected jobless claims to fall slightly to around 330,000.
[MarketWatch]
[Bloomberg]
