Announced this morning, Retail Sales for January increased 3.8% for the month, much higher than expected. Non-Store retailers, Department stores, and Furniture stores were all strong were strong, while Gasoline stations were weak. Non-store retailers were up 14.5% in the month, which could be related to people using gift cards given over the holidays. The Control Group, which is a closer measure of the inputs for GDP that excludes sales for food, autos, building materials, and gas stations, increased 4.8% in January also much higher than expected. Overall, strong headline figures for retail sales in January, but they should be tempered given current inflationary pressures and revisions the previous month even more negative than first announced. Consumers appear intent spending especially as we move past the Omicron variant, despite waning sentiment amidst elevated prices. As we work through this process, the amount which spending migrates to services, rather than goods which were sought after during the pandemic, will be important to alleviating inflationary pressures in the months ahead. In all, the 10-year US treasury yield ticks lower following the report and equity futures are lower as we head into the market open.
This material is intended to be for informational purposes only and is intended for current or prospective clients of Argent Trust Company. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice, and does not take into account all the circumstances of each investor. Forward-looking assumptions are Argent Trust Company’s current estimates or expectations of future events or future results based on proprietary research and should not be construed as an estimate or promise of results that a portfolio may achieve. Actual results could differ materially from the results indicated by this information. Investments can go down as well as up. Past performance is not a reliable indicator of future results.
