Page 7 - ARUBA TODAY

A7
U.S. NEWS Thursday 16 March 2017

US Financial Front:

Americans spent slightly more at retail stores last month

CHRIS RUGABER and garden centers. But
AP Economics Writer they fell sharply at electron-
WASHINGTON (AP) — ics and appliance stores.
Americans spent only Sales also fell at gasoline
slightly more last month stations, though that mostly
at retail stores compared reflects lower prices. Cloth-
with January, a sign of ing stores, sporting goods
consumer caution despite retailers and department
rising optimism about the stores also all reported low-
economy. er sales.
The Commerce Depart- There are several addition-
ment said Wednesday re- al factors that could drive
tail sales ticked up a sea- spending higher in the
sonally adjusted 0.1 per- months ahead. Consumer
cent in February, after confidence soared to its
a much bigger gain of highest level in more than
0.6 percent the previous 15 years in February, ac-
month. January’s gain was cording to the Conference
revised higher. Board, a business research
The figures suggest that group.
strong job gains this year, Hiring and average hourly
near record-high stock pay growth have picked
prices and decent pay up since the new year.
gains haven’t yet lifted A shopper passes a display in the window of a J. Crew store in the Shadyside shopping district of Americans’ finances are
spending. But last month’s Pittsburgh. On Wednesday, March 15, 2017, the Commerce Department released U.S. retail sales in better shape, with aver-
sluggish pace could prove data for February. (AP Photo/Gene J. Puskar) age home prices back to
temporary. their pre-recession levels in
Economists note that above the Federal Re- ally higher and underly- the Fed shouldn’t raise in- much of the country.
spending was likely held serve’s target of 2 percent. ing retail sales are healthy terest rates at the FOMC Yet the boost in confi-
back by delays in tax re- The Fed is expected to an- enough,” said Paul Ash- meeting that concludes dence may not be broadly
fund payments. A new law nounce its third rate hike in worth, chief U.S. econo- later today.” shared. That could limit any
has required tougher scru- 15 months later today. mist at Capital Economics. Sales rose in February at spending that might result.
tiny of a tax credit claimed “Inflation is trending gradu- “Nothing here to suggest furniture stores and home q
by lower-income taxpay-
ers. Wal-Mart said last Consumer prices rose at a tempered pace in February
month that the delay had
slowed sales at its stores JOSH BOAK comes as the Federal Re- the consumer measure of 2.7 percent over the past
in February. Other retailers AP Economics Writer serve appears poised to inflation above the Fed tar- year. Excluding volatile
have reported similar con- WASHINGTON (AP) — U.S. raise a key short-term rate get. Some economists see food and energy catego-
cerns. Yet tax refunds have consumer prices rose at a Wednesday for the third greater inflation arriving this ries, prices have increased
started to flow this month, slower pace in February. time since late 2015. The year due to job growth and 2.2 percent.
which could trigger a re- Clothing and housing costs Fed has kept rates low in a 4.7 percent unemploy- Several key categories are
bound. Economists were rose last month, while mo- the aftermath of the 2008 ment rate. running above that aver-
also encouraged by the tor vehicle and gasoline financial crisis as inflation “An improving economy, age. Housing costs have
upward revisions to Janu- prices dipped. had been consistently run- in particular a tighter la- risen 3.5 percent over the
ary’s sales data, which Consumer prices rose 0.1 ning below the central bor market, will put up- past 12 months, while the
point to potentially faster percent in February, a bank’s 2 percent annual ward pressure on inflation price of medical treatment
growth in the first three sharp deceleration from target. throughout 2017,” said has climbed 3.4 percent.
months of the year. the 0.6 percent jump in But higher energy prices Gus Faucher, deputy chief Anxiety over being able to
A separate report showed January, the Labor Depart- since September, along economist at PNC Finan- afford health insurance is
inflation rose in February ment said Wednesday. with rising health care and cial Services. on the rise for many Ameri-
and is now comfortably The tempered increase housing costs, have pushed Consumer prices have risen cans. q