United State Retail Sales Decelerate in January

After strong gains to end 2010, retail sales growth slowed in January
to 0.3 %, below market expectations of 0.5%.

Ex-autos also posted a 0.3% gain (versus 0.5% expected), while
December's number was revised down slightly to 0.5% (from 0.6%
previously).

Among the categories, sales increases were led by gas station sales
(+1.4%), and food and beverage stores (+1.3%). Rising prices
undoubtedly contributed to these gains.

A soft housing market and inclement weather both likely played a role
in the soft pace of growth as building materials declined by a hefty
2.9%, and furniture stores fell 0.3%.

Retail sales without gasoline, building materials and autos were up
0.4% in January and on 3-month average annualized basis are still
vacant strong at 5.1%.

*Key Implications*

Rising gas prices continue to prop up sales at gas stations and
warrant attention as they diminish the real purchasing power of
consumers. Still, with signs pointing to an acceleration in job growth
and the payroll tax cut also adding support, real income gains will
continue to propel gains in spending through the remainder of 2011.

While retail sales growth slowed in January, consumer spending overall
has accelerated soundly over the past few months. A mild setback,
likely related to poor weather does not change the view that consumers
will continue to be an vital element of recovery.

With auto sales still running some 30% below their long-run pre-capita
average, pent-up demand in combination with rising consumer confidence
and accommodative interest rates leaves room for continued
outperformance in this vital category.

Source: ActionForex.Com