U.S. Retail Sales Down, Jobless Claims Up

[Donutboy 0]

U.S. Retail Sales Down, Jobless Claims Up

WASHINGTON (Reuters)  - U.S. retail sales posted a surprise decline in January and claims for unemployment benefits rose in the latest week, according to government reports on Thursday showing the U.S. economic recovery stumbled a bit early in the year.

The Commerce Department said retail sales -- a major component of U.S. consumer spending -- fell 0.3 percent to $322.87 billion in January, the first decline since September. Excluding autos, however, retail sales posted a stronger-than-expected 0.9 percent increase.

The Labor Department reported first-time claims for jobless benefits last week rose unexpectedly by 6,000 to 363,000.

Financial markets showed little initial reaction to the data, despite its divergence from Wall Street forecasts.

Wall Street had expected a more robust showing for overall spending. Analysts' forecasts had called for a flat reading on overall sales and a weaker 0.5 percent increase for ex-auto sales. Claims had been expected lower at 345,000.

While autos were the main factor in bringing down overall sales, weakness was also seen in other categories. Motor vehicle sales dipped a sharp 3.9 percent in January, their steepest decline since February 2003. Purchases at furniture and building materials stores fell 0.9 percent.

"The auto component can be very volatile on a month-to-month basis, but it looks as if core sales are holding up very well," said Gary Thayer, chief economist with A.G. Edwards & Sons in St. Louis.

Buoyed by cold weather, clothing sales gained 2.9 percent, their biggest gain since October 2002. Sales at grocery stores rose 1.8 percent.

Earlier this month, the nation's largest retailer, Wal-Mart Stores Inc. <WMT.N> reported surprisingly strong January sales, aided by colder weather that boosted demand for winter apparel. The Bentonville, Arkansas,-based company said January sales at stores open at least a year were up 5.7 percent, above its forecast of a 3 percent to 5 percent gain.

[AUloggerhead 2,507]

Good God! Retail sales fell after the Christmas season! 1st time jobless claims increased from 357k to 363k! An increase of 6k, or .... 1.6%. :roll:

I think the most important newsworthy item in that whole article was this:

Financial markets showed little initial reaction to the data, despite its divergence from Wall Street forecasts.

Much ado about nothing.

[Tiger Al 0]

Maybe it means it declined for January compared to other January's historically, not a decline from December. I'm sure that when compared to December, all other months would show a decline.

[TrueTiger 0]

Well I haven't slowed down on my shopping. I usually spend the same amout of money each month.

WAR EAGLE