US retail sales gained considerable year-over-year (YoY) traction in February this year despite a monthly slowdown from unusually high numbers in January as increased COVID-19 vaccination, government stimulus and reduced restrictions on businesses continued to affect the pace of spending, according to the National Retail Federation (NRF).
“February’s retail sales numbers are a minor speed bump on the road to post-pandemic recovery and are not a reflection of consumers’ willingness and ability to spend and drive the economy,” NRF president and chief executive officer Matthew Shay said in a statement.US retail sales gained considerable year-over-year (YoY) traction in February this year despite a monthly slowdown from unusually high numbers in January as increased COVID-19 vaccination, government stimulus and reduced restrictions on businesses continued to affect the pace of spending, according to the National Retail Federation (NRF).#
"A number of factors contributed to these results, including major snowstorms in the northeast and unprecedented ice storms in the south, but they do not diminish the stimulus-related growth we saw in January or what we expect to see as additional stimulus relief hits consumer bank accounts in the weeks ahead. Looking forward to the spring and with consumer confidence at its highest level since last March, we remain optimistic that retail will help facilitate a surge in spending, job growth and capital investment in the second half of the year as more Americans are vaccinated and local economies reopen nationwide,” he added.
“Overall, February’s results confirm that consumers are willing to spend as the virus situation improves and continued government stimulus further strengthens the economic backdrop. With another round of stimulus checks being mailed right now, we expect another large boost in consumer spending over the next few months,” NRF chief economist Jack Kleinhenz said.
The US Census Bureau today said overall retail sales in February were down by 3 per cent seasonally adjusted from January but up 6.3 per cent year over year. That compares with a monthly increase of 7.6 per cent and a yearly gain of 9.5 per cent in January. Despite occasional month-over-month declines, sales have grown year-over-year every month since June, according to census data.
NRF’s calculation of retail sales, which excludes automobile dealers, gasoline stations and restaurants to focus on core retail, showed February was down by 3.4 per cent seasonally adjusted from January but up by 7.1 per cent unadjusted year over year.
That compared with an increase of 7.7 per cent month over month and an increase of 12.7 per cent YoY in January. NRF’s numbers were up by 8.9 per cent unadjusted YoY on a three-month moving average.
February’s gains come as NRF is forecasting that 2021 retail sales will increase by between 6.5 per cent and 8.2 per cent over 2020, for a total between $4.33 trillion and $4.4 trillion. Retail sales during 2020 increased 6.6 per cent despite the pandemic, beating the previous record growth rate of 6.3 per cent in 2004.
Online and other non-store sales were down by 5.4 per cent month over month seasonally adjusted but up by 23.5 per cent unadjusted YoY.
Clothing and clothing accessory stores were down by 2.8 per cent month over month seasonally adjusted and down by 14.9 percent unadjusted YoY.
ALCHEMPro News Desk (DS)
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