Cold Temperatures Hurt U.S. Retailers as Sales Drop: Economy
Bloomberg - Mar 12, 2015
The bitter cold that swept over parts of the U.S. chilled retail sales in February as the world’s largest economy began the year on weak footing.
Purchases unexpectedly dropped 0.6 percent, a third consecutive decline, according to figures issued by the Commerce Department on Thursday in Washington. Other data showed fewer Americans than forecast filed claims for jobless benefits last week, and the cost of imported goods rose in February.
Auto dealers, building-material outlets and department stores were among the merchants that suffered through record cold and snow in parts of the Northeast and Midwest, which opens the possibility for a rebound in demand this month. The strengthening job market and still-low gasoline prices are among reasons most economists remain optimistic on the outlook for consumer spending, the biggest part of the economy.
“It’s not disastrous,†said Michael Feroli, JPMorgan Chase & Co.’s New York-based chief U.S. economist. “There could be some weather effect holding back retail sales. We still have a very good labor market and a lot of other things that are supportive of spending.â€
