World News | February Retail Sales Fall 3 Per Cent After Soaring the Month Before

New York, Mar 16 (AP) Americans spent less last month, partly due to bad weather in parts of the country that kept shoppers away from stores.

Retail sales fell a seasonally adjusted 3 per cent in February from the month before, the US Commerce Department said Tuesday.

The drop comes after retail sales soared in January as people spent the USD 600 stimulus checks sent at the end of last year.

In fact, the Commerce Department revised its January number up to 7.6 per cent from it's previously reported rise of 5.3 per cent.

Analysts at JPMorgan Chase had expected retail sales to dip in February after icy weather in Texas knocked out power and forced some stores to temporarily close.

The bank said credit and debit card spending fell sharply after the storm in Texas, as well as nearby states, such as Arkansas and Mississippi.

Economists expect retail sales to rise again in March as many Americans get USD 1,400 direct payments, part of a USD 1.9 trillion COVID-19 relief package that was signed into law last week.

Wider distribution of vaccines is also expected to boost economic growth in the second half of this year as people become less fearful of catching the virus.

There's already signs of that happening: Employers added a robust 379,000 jobs in February, helped by a sharp increase of hiring at restaurants and bars, suggesting that Americans are going out again as states relax restrictions.

Tuesday's retail sales report covers about a third of overall consumer spending.

It doesn't include haircuts, hotel stays and other services, which have been badly hurt by the pandemic.(AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)