Retail sales in March dropped 0.4% in the United States, compared to expectations of unchanged activity.
The decline followed a solid 1.0% gain in February though this was revised down from a previously-estimated 1.1%. Some slowing in activity had been expected given earlier indications of some modest weakening in unit auto sales and declining gasoline prices that were anticipated to weigh on gas station receipts. Such was confirmed in today’s report with the motor vehicle component down 0.6% and gas station receipts lower by 2.2%.
The so-called "control" measure, which excludes sales at motor vehicle dealerships, gasoline stations and building material stores (which rose 0.1% in March), fell 0.2% in the month following a 0.3% gain in February that was revised down from a previously-estimated gain of 0.4%.
A number of components showed declines in the month including electronics and appliances (1.6%), general merchandise stores (1.2%) and sporting goods stores (0.8%). Some offset was provided by a 0.9% gain in the furniture component likely reflecting the ongoing rebound in new housing construction.
In a separate release out this morning, producer prices in March fell a greater-than-expected 0.6% which almost fully reversed the 0.7% gain in February. Most of the weakness was concentrated in the energy component which dropped 3.4% in the month.
This decline more than offset a 0.8% jump in food prices and a 0.2% gain in core prices. On a year-over-year basis, the overall producer price increase moderated in March to 1.1% from 1.7% in February though for core prices the annual rate remained unchanged at 1.7%.
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