UPDATE: US Feb Retail Sales Above Expectations
12 Marzo 2009 - 3:09PM
Dow Jones News
U.S. retail sales fell slightly in February but performed much
better than expected, with increases in an array of businesses from
furniture to clothing and electronics.
Retail sales fell by 0.1% last month, the Commerce Department
said Thursday. Economists expected a bigger drop of 0.4%.
And sales in January were revised up sharply, surging 1.8%
instead of rising by 1.0% as originally reported.
Automobile and parts sales proved grim again, plunging 4.3% in
February. Excluding autos, all other sales climbed 0.7% - much
better than the 0.1% gain expected by economists. Sales without
autos and parts in January had gone up an upwardly revised 1.6% -
following five straight, large drops.
Gasoline station sales gave a lift to the overall retail number.
Last month, gasoline station sales climbed 3.4%. Gasoline sales
rose 2.8% in January. Stripping away sales at gas stations, demand
at all other retailers decreased 0.4% in February.
The retail sales report details how people spend their money.
Consumer spending is a vital part of the economy, making up about
70% of gross domestic product, which is the broad measure of
economic activity.
Excluding auto sales and gas station sales, all other retailers
saw sales rise 0.5% in February.
Sales last month climbed 2.8% at clothing stores; 1.2% at
electronic stores; 1.3% at general merchandise stores; 0.3% at mail
order and Internet retailers; 0.6% at health and personal care
stores; 0.7% at furniture retailers; and 0.2% at sporting goods,
hobby, book and music stores.
Sales fell 0.2% at eating and drinking places; 0.7% at food and
beverage stores; and 0.2% at building material and garden supplies
dealers.
Weakness in spending in recent months is both a cause and
symptom of the recession. People didn't open their wallets because
the stock market collapsed, home prices crashed, heavy household
debt, and fears of layoffs.
Data last week showed the savings rate in January reached a
nearly 14-year high. The Commerce Department reported personal
savings as a percentage of disposable personal income was 5.0%, the
highest since 5.5% in March 1995 and up from 3.9% during December
2008.
The economy fell 6.2% at the end of 2008, the worst showing in
almost 27 years. Companies losing revenues to the slump are cutting
costs by firing people. The economy in February shed 651,000 jobs,
raising total job losses since the recession began in December 2007
to 4.4 million. National Semiconductor Corp. (NSM), with net income
down 71% in the quarter ended March 1, announced Wednesday plans to
eliminate 1,725 jobs, or 26% of the Santa Clara, Calif., technology
company's workforce.
The rising unemployment rate is pushing up credit card
charge-offs; those reached a new high of 7.74% in January.
Uncollectible debt could lead banks to reduce credit lines to
customers, which would chill spending and hurt the economy
further.
Year-over-year, car and parts sales were 23.5% lower from
February 2008.
-By Jeff Bater, Dow Jones Newswires; 202-862-9249;
jeff.bater@dowjones.com