U.S. Retail Sales Unexpectedly Drop 0.2%
The 0.2% drop was surprising because retail sales had jumped 1.3% in January, and many analysts had predicted a 0.4% rise for last month.
Consumer spending accounts for two-thirds of all economic activity and was an engine of the economy's sizzling growth during the first half of 2000.
And since it involves nearly every type of cargo, at least of finished goods, the health of retail sales has a direct impact on many trucking operations.
Just last week, USFreightways Chairman Samuel K. Skinner said that slower growth in January and February was one reason his company’s first-quarter earnings would fall well below estimates.
This week began with a huge selloff in the U.S. stock market on Monday, which then echoed in markets around the world. That came after a new wave of earnings warnings and layoff announcements Friday that furthered undermined investor confidence about the U.S. outlook.
In Washingtion, the White House said Tuesday the report suggested further weakness in the economy, and was another reason Congress should approve the $1.6 trillion tax cut.
he weakness in February retail sales, Commerce said, was led by a sharp decrease in sales at furniture and home furnishing stores, and at bars and restaurants. Car and truck sales rose a modest 0.2%.
Some economists cited poor weather around the country as a possible contributing factor. Still, this is likely to add fuel to calls for further interest rate cuts next week. Neil Abt, Transport Topics
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