Retail Sales Suffer Biggest 2-Month Drop In A Decade Despite Jan Rebound

After December's narrative-destroying-"outlier" collapse in retail sales, January saw a modest rebound (+0.2% MoM) but against a downwardly revised December (from -1.2% to -1.6% MoM).

 

Under the headline data, things improved more with core retail sales up 1.2% MoM in Januray (but again with a dramatic downward revision in Dec).

The Control Group - which fits into the GDP data - rebounded +1.1% MoM but saw a huge downward revision in December to -2.3% MoM...the weakest since Jan 2000! But rebounded most since Feb 2014...

Non-store retail sales soared in January...

Sporting Goods and building materials rose by the most...

  • Sporting goods, hobby, musical and book stores: +4.8%

  • Building material and garden equipment: +3.3%

  • Food and beverage stores 1.1%

  • Health and personal care stores: 1.6%

  • General Merchandise stores: 0.8%

  • Miscellaneous store retailers: 0.1%

  • Nonstore (Online) retailers: 2.6%

  • Food service and drinking places: 0.7%

But not everything was rosy with drops in the following sectors:

  • Motor Vehicles and parts dealers -2.4%

  • Furniture and home furnishings -1.2%

  • Electronics and appliance stores -0.3%

  • Clothing and accessories stores -1.3%

  • Gasoline Stations -2.0%

But the headline point is that the last two months have seen the biggest decline since March 2009...

Seems like this rebound print won't help the GDP expectations due to the downward revisions.