Page 7 - atoday mrch 16
P. 7
U.S. NEWS A7
Wednesday 16 March 2016
US Financial Front:
Low gas prices drag down US retail sales in February spending, which drives 70
duced their forecasts for percent of the economy.
three months of this year. rate hikes this year from Yet retail sales account
Economists had hoped four to two. Fed policymak- for only about one-third of
that solid hiring and lower ers are meeting Tuesday all spending, with services
gas prices would entice and Wednesday. “Today’s such as haircuts and Inter-
consumers to spend more, report is decidedly nega- net access making up the
yet Americans seem to be tive for both the economy other two-thirds.Americans
pocketing much of the and the probability of a are spending more on ser-
savings from cheaper gas. near-term rate hike from vices such as health care,
The weak data could the Fed,” said Bricklin Dw- education and mobile
make it more likely that the yer, an economist at BNP data, so overall purchases
Federal Reserve will hold Paribas. The retail report may rise faster than the re-
off on raising the short-term provides the first indication tail data suggests.
interest rate it controls. each month of Americans’
Most economists have re-
C. S. RUGABER Retail sales fell 0.1 percent
AP Economics Writer in February, the Com-
WASHINGTON (AP) — U.S. merce Department said
retail sales slipped last Tuesday. Excluding the vol-
month, pulled down by atile gas and auto catego-
sharply lower gas prices, ries, sales rose 0.3 percent.
and Americans spent Overall sales were revised
much less in January than sharply lower in January,
previously estimated. The from a 0.2 percent gain to
figures suggest that con- a drop of 0.4 percent.
sumers remain cautious Americans’ reluctance to
about spending despite open their wallets could
steady hiring. hold back growth in the first
January business stock-
piles up 0.1%
M. CRUTSINGER which makes American
AP Economics Writer products less competitive
WASHINGTON (AP) — on overseas markets.
U.S. businesses boosted Economists say that solid
their stockpiles by a small gains in employment will
amount in January while bolster consumer sales in
sales fell for a fourth month. coming months, helping to
Inventories held by busi- offset the weakness from
nesses increased 0.1 per- falling exports and sharp
cent in January after being cutbacks at energy com-
unchanged in December, panies in response to a
the Commerce Depart- plunge in energy prices.
ment reported Tuesday. The small rise in inventories
Business sales were down reflected gains of 0.3 per-
0.4 percent in January af- cent in stockpiles held by
ter a 0.7 percent drop in wholesalers as well as a 0.3
December. Sales were also percent gain in retail stock-
down in November and piles. These offset a 0.4 per-
October and were flat in cent drop in inventories at
September. the manufacturing level.
American manufacturers One reason sales and in-
have struggled with fall- ventories look so weak is
ing export sales in recent the big drop in energy pric-
months, reflecting eco- es over the past year. These
nomic weakness over- figures are not adjusted for
seas and a stronger dollar, price changes.
