US: Retail sales report was overall a mixed bag - Nomura

In view of the analysts at Nomura, US February retail sales report was overall a mixed bag as the core (“control”) retail sales in February increased by 0.1% m-o-m, weaker than expectations (Nomura: 0.3%, Consensus: 0.2%) with backward revisions.

Key Quotes

“January was raised by 0.4pp to 0.8%, but December was lowered by 0.1pp to 0.3%. It is possible that individual tax refunds which have been slower this year than last year may have damped the consumer spending. As more consumers receive delayed tax refunds in March, it is possible that we may see some boost in retail sales in March.”

“In total, the headline retail sales were up 0.1% m-o-m, lower than our expectation but in line with market expectations (Nomura: 0.4%, Consensus: 0.1%). Sales at autos and parts dealers were softer than expected, decreasing by 0.1%, and sales at gasoline stations were down modestly by 0.6%. On the other hand, a strong increase in building materials and supply sales offset these decreases to some degree.”