Winter storm hits North America, consumer demand and retail sales decline

U.S. retail sales fell in February as severe winter weather enveloped much of the country, suggesting a temporary pullback in demand that could accelerate in the coming months , Bloomberg reported .

Retail activity has been hampered this month as U.S. cities endured sub-zero temperatures and winter storms crippled power grids in Texas and the Great Plains .

Spending may also have slowed because the IRS tax-filing window was two weeks later than usual, delaying refunds. An IRS report last week showed refunds were down 32% year-over-year .

Faced with the current predicament, the government has also taken corresponding measures. Biden instructed states last week to make all adults eligible for vaccination by May 1 , and issued various subsidies to maintain the daily lives of the American people.

A separate report from the Labor Department showed import prices rose 3% in February from a year earlier , the biggest gain since October 2018 as the cost of oil surged.

The U.S. Census Bureau said total retail sales in February fell 3% from January on a seasonally adjusted basis, but were up 6.3% year-over-year . That compares with a 7.6% monthly increase in January . Despite the occasional month-over-month decline, sales have risen year-over-year in each month since June, according to Census data.

"After a very strong January, we expected February to be weak by comparison , " said NRF Chief Economist Jack Kleinz .

Kleinhenz noted that spending in February was hurt by a series of winter storms, which affected the ability of consumers in many parts of the country to go out and shop, as well as a delay in the IRS starting to accept tax returns, which delayed the release of taxes .

He added : "Overall, February's results confirm that consumers are willing to spend as the improving pandemic situation and continued government stimulus further strengthen the economic backdrop . We expect consumer spending to grow sharply again in the coming months. "

Retail sales fell in every category in February, with all categories falling to varying degrees except for groceries (which were unchanged month-over-month). The specific situation of key retail industries is as follows :  

•Online and other non-store sales fell 5.4% month-over-month on a seasonally adjusted basis but increased 23.5% year-over-year on an unadjusted basis.

•Building materials and garden supply stores fell 3% month-over-month on a seasonally adjusted basis, but rose 11.4% year-over-year on an unadjusted basis.

•Sporting goods stores fell 7.5% month-over-month on a seasonally adjusted basis, but rose 11% year-over-year on an unadjusted basis.

•Grocery and beverage stores were unchanged from the previous month on a seasonally adjusted basis but increased 7.2% unadjusted year-over-year.

• Furniture and home furnishing stores fell 3.8% month-over-month on a seasonally adjusted basis but rose 5.1% year-over-year on an unadjusted basis.

•Health and personal care stores fell 1.3% month-over-month seasonally adjusted but rose 2.4% year-over-year unadjusted.

• Electronics and appliance stores fell 1.9% month-over-month seasonally adjusted and 6.7% month-over-month unadjusted.

• Clothing and clothing accessories stores fell 2.8% month-over-month seasonally adjusted and fell 14.9% month-over-month unadjusted.

North America

Winter Storm

Consumption

Retail Sales