Inflation, Omicron Concerns Tempered February Retail Spending: NRF
February retail sales were down 1% seasonally adjusted from January’s revised numbers and up 13% year on year, excluding car dealers, gas stations and restaurants, said the National Retail Federation Wednesday, citing inflation and impact from the omicron variant. The…
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U.S. Census Bureau reported overall retail sales were up 0.3% from January and 17.6% year on year. Electronics and appliance stores were down 0.6% month-over-month seasonally adjusted but up 2.6% unadjusted year-over-year. “February retail sales reflected continued strong labor market conditions but were certainly affected by higher consumer prices,” NRF Chief Economist Jack Kleinhenz said. Inflation levels at a 40-year high “are hitting household purchasing power and likely restraining spending,” Kleinhenz said. The double-digit year-over-year increase was expected since much of the economy was in stay-at-home mode in February 2021, he said. Though February sales showed the economy’s “resilience,” war in Ukraine is an "increasing headwind that could dampen spending around the globe,” said the economist. NRF forecast Tuesday that 2022 retail sales will increase 6%-8% to $4.86 trillion-$4.95 trillion (see 2203150054).