Cold weather put a crimp on
US chain store sales last week as unseasonable temperatures dampened demand for spring merchandise, two reports today showed.
But analysts said the lag in sales was probably just a brief lull following strong sales at the start of the year, and that the economic recovery remains well under way.
US chain store sales fell 0.6 per cent in the week ended March 23 after a 0.1 per cent rise in the prior week, the Bank of Tokyo-Mitsubishi and UBS Warburg reported in their Weekly Chain Store Sales Snapshot.
"As a result of the lingering winter weather in parts of the country, spring merchandise demand was soft," the BTM report said.
Separately, Instinet Research's Redbook Retail Sales Average slipped 0.8 per cent in the three weeks ended March 23, compared with the same period in February.
"If this continued for another few weeks, then we would become more concerned," said Mike Niemira, senior economist at BTM. "I suspect this is a temporary pause after a pretty good acceleration earlier in the year."
Signs that the economic rebound is gathering steam emerged today from a separate report showing orders for durable goods - items designed to last three years or more like aeroplanes, cars and refrigerators - rose 1.5 per cent in February.
A jump in a closely watched index of consumer confidence also suggested that spending could get a boost in the second quarter.
"The confidence indicators show that consumers feel more comfortable, and presumably will spend more in the future," said Brian Fabbri, chief economist at BNP Paribas.
Consumer spending accounts for two-thirds of US economic activity.