In February, US retail sales increased by 0.6%, rebounding from a previous decline. Sales of motor vehicles and food & beverage stores saw growth, while gasoline station sales continued to decline.
Monthly growth was driven by higher sales in building materials, motor vehicles, and electronics, offset by lower sales in furniture and clothing.
Higher US retail sales
Producer inflation rose to 1.6%, the fastest in 5 months. Initial jobless claims for the week ending March 9 fell to 209K, contrary to expectations.
With robust domestic spending and labor market conditions, the Fed is expected to maintain interest rates in the first half of 2024 before considering easing later in the year.
“We continue to expect the US Fed will consider easing its interest rate from mid-year to avoid the overly restrictive monetary policy leading to a sharper slowdown in the near future,” says MIDF.
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