That retail sales rose in March in the United Statesmore than it was expected, on monthly basis by 1.1 percent - this is good news for the American consumer. The Economists had expected that the growth would beby 0.8 percent on monthly basis. A substantial revision of the previous month values from 0.3 percent to 0.7 percent on a monthly basis has become an addition to the good news, -- say the experts of XM Company.
It was the most significant retail sales increasing for 1 ½ years on a monthly basis.The increase in purchases in furniture stores and clothing stores was particularly encouraging. Some Economists also gain the values attributed to the latent demand, since the consumers could not shop in the stores during the previous months due to extreme weather conditions. In annual terms, the retail sales are of 3.8 percent.
The car sales correction showed that the retail sales were still strong, registering the growth by 0.7 percent against the expectations of 0.5 percent of growth. Net retail sales index, which excludes the components such as cars, gasoline, building materials and food services sector grew by 0.8 percent. The index resembles closely to the calculation consumer component, which leads to the gross domestic product.
Strong retail sales figures seemed brushing away two problems. Firstly, it is the problem concerning the economic slowdown that seemed stable due to the extreme frosts. The data on the number of new jobs created in the non-agricultural private sector, and now the retail sales apparently denied it. Secondly, it is the problem of the American consumer dissatisfaction because ofthe wage growth inability and because of the relatively weakened labor market. And the data indicator of the consumer confidence and the retail sales data showed that consumption was growing and was likely to support the economic growth in the United States.
Immediately after the publication of the data, the Euro fell from the level of 1.3827 to about 1.3810, while the USD/JPY rose from the levelof 101.80 to the level about 102. During the session, however, the rising of the Dollar has disappeared, as it is unlikely that this would affect the decision on monetary policy of the Federal Reserve System.