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U.S. retail sales posted solid growth in February, but oil prices remain a concern
Svmuu News: Data released by the U.S. Department of Commerce on Wednesday showed that retail sales in February rose more than expected, driven by broad-based growth that included a rebound in auto purchases. However, soaring gasoline prices caused by the war in the Middle East could dampen consumer spending in the coming months. Unadjusted for inflation, retail sales rose 0.6% in February after a slight decline in January. The U.S.-led war against Iran has pushed global oil prices up by more than 50%, with the national average retail price of gasoline rising above $4 per gallon for the first time in more than three years. Markets are concerned that if gasoline prices continue to rise, they could offset some of the boost to consumer spending and the overall economy provided by tax cuts. Retail sales excluding automobiles, gasoline, building materials, and restaurant services rose 0.5% in February, following a 0.2% increase in January. These so-called “core retail sales” most closely track the consumer spending component of GDP. Consumer spending slowed in the fourth quarter of last year, dragging down annualized GDP growth to 0.7%; (Jin10)
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