Sales at U.S. retailers fell in March, raising concern that consumer spending is losing momentum.
The 0.3 percent drop in purchases followed little change the prior month, according to Commerce Department figures released Wednesday in Washington. The median forecast of 81 economists surveyed by Bloomberg called for a 0.1 percent gain.
The decrease was led by a drop in demand for autos, and at clothing stores, Internet merchants and restaurants. Sustained gains in consumer spending, the biggest part of the economy, are needed at a time when exports are still depressed by cooling global markets and U.S. manufacturing is barely emerging from a slump.
"We're having a little bit of a soft patch here for the consumer, with no obvious rationale," said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York. "It's definitely a softer start to the year. Provided job gains remain as strong as they've been, we expect consumer spending should be OK."
Estimates in the Bloomberg survey for total retail sales ranged from a decline of 0.8 percent to a gain of 0.4 percent. The February tally was previously reported as a 0.1 percent drop.
While nine of 13 major categories showed gains last month, those increases weren't large enough to offset the drop in autos, clothing and restaurants.
Auto sales dropped 2.1 percent in March. That was in line with industry data earlier this month that showed the pace of car demand was leveling off. Purchases of cars and light trucks grew at a 16.5 million annualized rate in March, the slowest in more than a year, according to Ward's Automotive Group.
Excluding autos, purchases rose 0.2 percent last month after being little changed in February, Wednesday's report showed. The increase was paced by a 0.9 percent jump in receipts at service stations, which probably reflected the recent pickup in gasoline prices.
The Commerce Department's retail sales data aren't adjusted for prices, so higher fuel costs inflate filling-station receipts.
Regular gasoline at the pump climbed last month to an average $1.94 a gallon, or up 21 cents from the February average of $1.73, according to AAA, the biggest U.S. auto group.
Retail sales excluding automobiles and service stations increased 0.1 percent, less than the projected gain of 0.3 percent in the Bloomberg survey.
That suggests Americans are adding to their savings.
The figures used to calculate gross domestic product, which exclude categories such as food services, auto dealers, home-improvement stores and service stations, showed a 0.1 percent advance, matching the prior month's increase in the so-called retail control group.
The retail report showed sales decreased 0.9 percent at clothing chains, the biggest retreat since October, and 0.8 percent at restaurants and bars.
Some economists may further trim estimates for consumer spending after the retail sales results. The median forecast in a Bloomberg survey shows household purchases rose at a 1.9 percent annualized rate in the first quarter, the weakest in a year, after a 2.4 percent pace in the prior three months.
The labor market continues to remain robust, however. The March payroll report showed employers added 215,000 workers to payrolls after a 245,000 February advance, while the unemployment rate edged up to 5 percent as more people entered the labor force.
A separate report from the Labor Department on Wednesday showed wholesale prices in the U.S. unexpectedly fell in March for a second month, showing that inflation is still well-contained as Federal Reserve officials weigh whether further increases in the benchmark interest rate are warranted.
The 0.1 percent drop in the producer-price index followed a 0.2 percent decrease in February. Over the previous 12 months, wholesale prices fell 0.1 percent.
Business on 04/14/2016