US Retail Sales: A modest increase expected for February - Wells Fargo

Analysts from Wells Fargo, expect that tomorrow, the retail sales report, to show an increase of 0.1% in February. 

Key Quotes: 

“Retail sales got a strong start in 2017, increasing 0.4 percent in January after an upwardly revised 1.0 percent jump in December. January’s print came despite a soft reading for motor vehicle and part dealers’ sales and miscellaneous store retailers’ sales. Most other sales segments had strong sales in January, particularly gasoline stores, as gas prices continued to firm, and electronics, sporting goods and department stores posted solid growth after months of declines. January’s report generally supported the strong recovery indicated in the consumer surveys since the election.”

“Control group retail sales, which goes into the calculation of Personal Consumption Expenditures (PCE) within GDP, was also up 0.4 percent in January, which was a solid start to Q1. Retail sales are reported in nominal terms, so strength may be dampened somewhat when inflation is taken into account. Still, consumer demand remains well suited to drive growth this year.”