Although economists projected a 0.1% gain in retail spending in March, sales fell 0.3%. Of the 13 retail segments tracked, 9 of the 13 saw spending growth, but 3 categories dropped significantly enough to create the loss: autos, clothing and dining out. Sales decreased 0.9% at clothing chains, the biggest loss since October.
The labor market is robust, so the trend of less spending comes as a surprise. The value of sales is also being hurt by low prices, as retailers are offering discounts to clear unwanted merchandise in their warehouses. Sales at online retailers dropped 0.1%.
Of the 9 categories that saw increased spending, sporting goods and hobby stores rose 0.2% and electronics and appliance outlets rose 0.1%. Building materials and garden equipment stores increased the most, up 1.4%.
Source: Bloomberg, CNBC
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