WASHINGTON (Reuters) – Retail sales in the United States fell more than expected in March, as consumers cut back on purchases of cars and other luxury products, in a sign that the economy slowed at the end of the first quarter due to higher interest rates.
And given the weak labor market, the decline in retail sales is likely to continue. Separate data on Friday showed factory output fell last month. But the Federal Reserve (the US central bank) is ready to raise interest rates again in May before an expected pause in June for the bank’s fastest tightening of monetary policy since the eighties of the last century.
The Commerce Department said retail sales fell 1 percent last month. Data for February was revised to show retail sales fell 0.2 percent instead of 0.4 percent.
Economists polled by Reuters had expected sales to fall 0.4 percent. It increased by 2.9 percent year-on-year in March.
A separate report indicated that US factory production fell 0.5% in March after increasing 0.6% in February. Auto production fell 1.5 percent.
(Prepared by Muhammad Aysem for the Arabic Bulletin – Edited by Mahmoud Abdel-Gawad)
