In March, retail sales decreased by 1%, surpassing economists' predictions for a 0.4% decline. This suggests that consumers are feeling the impact of a more challenging economic climate. There was a decline in purchases of big-ticket items such as motor vehicles. This suggests that higher interest rates are causing the economy to lose momentum at the end of the first quarter. The previous month's data was revised, indicating that retail sales fell by 0.2% rather than 0.4% as previously reported. Reports have suggested that a tightening in credit conditions following the failure of two regional banks may have impacted retail sales. Despite the recent decline, consumer spending for the first quarter is on track to accelerate. The Federal Reserve is still expected to raise rates in May before pausing in June.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.