U.S. retail sales drop in February

Images showing shelves picked clean by panicked buyers in recent weeks tell one story…

But data out Tuesday tell a very different one: Americans last month held back on buying everything from electronics to appliances, building materials, cars and clothing.

Retail sales dropped by the most in more than a year in February, down half a percent, and the decline was broad.

Sales also dropped at restaurants and bars, where economists expect sharp declines now that the Centers for Disease Control has recommended cancellations of large gatherings.

The rapidly spreading coronavirus pandemic could further depress sales at retailers. That could strengthen economists’ expectations of a consumer-led recession by the second quarter. Goldman Sachs has cut its first quarter economic growth forecast to zero from 0.7%

Separately, as shoppers stay home to avoid catching the disease, American Express said Tuesday spending volumes fell at the end of February and well into March.

Source: Reuters