- ORIGINAL NEWS
Retail sales tumbled 0.8% in January, much more than expected
- SUMMARY
Consumer spending took a downturn in January, with retail sales dropping 0.8%.
Building and gardening sales plummeted.
The decline suggests a potential risk to the economy.
However, the job market remains strong, with initial unemployment claims falling.
Manufacturing indicators have also improved recently.
Despite the mixed signals, investors remain cautious as they await clues about the Federal Reserve’s future interest rate decisions.
Most economists anticipate the Fed will pause rate hikes but will monitor inflation data before considering cuts.
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
“Initial claims for unemployment insurance totaled 212,000 for the week ended Feb. 10, a decline of 8,000 from the previous week’s upwardly revised total and below the estimate for 220,000”
“Markets largely took the reports in stride, with stock futures pointing to a higher open on Wall Street”
Negative
“Consumer spending fell sharply in January, presenting a potential early danger sign for the economy”
“Headline inflation rose 0.3% in January and 0.4% when excluding food and energy prices”