U.S. retail sales fell more than expected moderately in February amid bitterly cold weather across the country. However, experts say, a rebound is likely as Washington readies to disrburse another round of pandemic relief money to mostly lower- and middle-income households.
Figures released Tuesday by the U.S. Commerce Department showed retail sales dropped by a seasonally adjusted 3.0% last month. Data for January was revised up to show sales rebounding 7.6% instead of 5.3% as previously reported. Economists had forecast retail dropping 0.5% in February.
Unseasonably cold weather gripped the U.S. in February, with deadly snowstorms lashing Texas and other parts of the South region. The decline in sales last month also reflected the fading boost from one-time $600 checks to households, which were part of nearly $900 billion in additional fiscal stimulus approved in late December, as well as delayed tax refunds.
Excluding automobiles, gasoline, building materials and food services, retail sales decreased 3.5% last month after surging by an upwardly revised 8.7% in January. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product. They were previously estimated to have shot up 6.0% in January.
Still, last month’s drop in core retail sales left the bulk of January’s gain intact, and the decline was probably temporary.
