Retailers benefited from the improving economic recovery last month, as the government reported this morning that retail sales increased by 1.0%. Ex-autos, sales were up 0.7%, and removing autos and the impact of higher gasoline station sales, so-called core sales grew a respectable 0.6%.
Retail sales have risen for eight consecutive months amid the improvement in the economy and rising consumer confidence. And the effort by the government late last year to put extra cash in our pockets also seems to have played a role.
Despite the improvement in the economy, modest job creation and the decline in layoffs, growth in core sales, as the chart above reflects, has been gradually slowing down after peaking in October.
It’s not something to be concerned about in my view, but it is something that’s worth watching, as we continue to gauge the strength of the consumer and the expansion.
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