U.S. retail sales posted robust growth in February, with oil prices emerging as a concern

Golden Ten Data reported on April 1 that data released by the US Department of Commerce on Wednesday showed that February retail sales exceeded expectations, driven by broad-based growth including a rebound in car purchases. However, the Middle East war has led to a surge in gasoline prices, which may dampen consumption in the coming months. Unadjusted for inflation, retail sales increased by 0.6% in February after a slight decline in January. The US-Israel war against Iran has driven global oil prices up over 50%, with the national average gasoline retail price rising above $4 per gallon for the first time in more than three years. The market is concerned that if gasoline prices continue to climb, they may offset some of the positive effects of tax cuts on consumer spending and the overall economy. Retail sales excluding automobiles, gasoline, building materials, and food services rose 0.5% in February, compared with a 0.2% increase in January. This so-called "core retail sales" figure most closely aligns with the consumption component of GDP. Consumer spending slowed in the fourth quarter of last year, dragging the annualized GDP growth rate down to 0.7%.