- US retail sales soared to 9.8% MoM
- US initial jobless claims dropped to pandemic lows
Retail sales in the US jumped 9.8% mom in March of 2021, following a downwardly revised 2.7% fall in the previous month. Today's figures easily beat analysts' forecasts of a 4.7% gain. It is the biggest monthly increase since May last year, as the economy continues to reopen, the $1,400 checks were sent starting in mid-March and the weather improved after unusually cold temperatures and winter storms in Texas and some other parts of the South region in February. Among the components that recorded the greatest increases are: sporting goods (23.5%), clothing (18.3%), motor vehicles (15.1%), food services and drinking places (13.4%), building materials (12.1%), gasoline stations (10.9%), electronics and appliances (10.5%). Gains were also recorded for miscellaneous store retailers (9%), general merchandise stores (9%), nonstore retailers (6%), furniture (5.9%), health and personal care (5.7%) and food and beverages (0.7%).
US retail sales surged 9.8% in March on a combination of better weather, strong jobs growth and another wave of stimulus payments. Source: Blomberg via ZeroHedge
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Create account Try a demo Download mobile app Download mobile appThe less volatile series of core retail sales also rose sharply, by 8.4%. The numbers for February were also revised up for both series. Strong job growth has also contributed to increase of retail sales. Initial jobless claims fell much further than expected last week to 576k, which is the lowest level since the pandemic began and well below analysts' expectations of 700k. The labor market has been supported by the quick pace of COVID-19 vaccinations, the lifting of pandemic business restrictions in many states and the government's $1.9 trillion stimulus package, which prompted employers to hire more workers to respond to growing demand. Despite labour market recovery, still 16.9 million Americans continue to collect jobless benefits, showing that millions were still facing a loss of a job or income.
The total number of people receiving some kind of unemployment benefit is still high. Source: Bloomberg via ZeroHedge
Many economists believe that the above mentioned factors will keep a very strong momentum in the coming months as the Federal unemployment benefits continue through to September. However, it is important to consider what will happen next and whether this trend will continue, given that there is a much smaller number of direct stimulus on the horizon.
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