Retail sales fell sharply in March, decreasing 0.3%. Auto sales declined 2.1% marking the greatest decline in automobile sales in over a year. Restaurant, apparel, and department-store sales were down significantly as well. On a positive note, personal care and building materials had strong increases. However, overall the report presents concerns over the health of the US consumer.
Jobless claims painted a strong picture of the labor market, with initial claims declining 13,000 to 253,000 and continuing claims falling 18,000 to 2,171,000 for the week of April 9th. This week’s reading is the lowest since 1973. The 4-week moving averages for both initial and continuing claims declined 0.6% and 0.5%, respectively. Initial claims are down 8.7% while continuing claims are down 3.4% since January, 2016.
Inflation rose 0.1% in March buoyed by energy, according to the Consumer Price Index for All Urban Consumers (CPI-U). The food index fell 0.2% as six major grocery-store food groups declined while the energy index increased 0.9% led by a 2.2% gasoline increase. The index for all items less food and energy continued its steady climb, rising 0.1% YoY. Overall, the CPI-U has risen 0.9% over the past 12 months.
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