MNI DATA IMPACT: US February Ret Sales Below-Expected -0.2%>

--Retail Sales Ex. Motor Vehicle -0.4%; Ex. Mtr Veh and Gas -0.6%

--Overall January Sales Revised Up, December Sales Unrevised

By Kevin Kastner, Shikha Dave, and Harrison Clarke

     WASHINGTON (MNI) - The value of retail sales posted a decline in 

February, down 0.2% vs the 0.3% gain expected by both Bloomberg 

consensus and in an MNI survey, following an upward revision to sales 

growth in January that leaves first quarter consumption below the fourth 

quarter average, data released Monday by the Commerce Department showed. 

     Sales excluding motor vehicle sales were also well below 

expectations, falling 0.4% compared with a Bloomberg consensus and an 

MNI median of a 0.4% gain. 

     Here are some of the key takeaways from the data released Monday: 

     - The lower-than-expected readings came despite a 0.7% gain in 

motor vehicle sales and a 1.0% gain in gasoline station sales. 

Excluding those two factors, retail sales were down 0.6%. 

     - February control group sales fell 0.2%, when a 4.4% fall in 

building materials and a 0.1% gain in food services were excluded as 

well as the motor vehicle and gasoline categories, suggesting underlying 

weakness. The sharp building materials decline was the largest since a 

4.8% drop in April 2012. The drop in food services sales was the largest 

since a 1.5% decline in February 2009.

     - January sales were revised up to a 0.7% gain from the previously 

reported 0.2% increase, while sales excluding motor vehicles were 

revised up to a 1.4% gain from the 0.9% gain reported last month. 

Control group sales were revised up to a 1.7% gain from the 1.1% gain 

previously reported. 

     - Q1 retail sales were down 1.9% vs the Q4 average at an annual 

rate. Ex. motor vehicle, retail sales were down 1.1% vs the Q4 average, 

but were up 1.4% ex. autos, building materials, gas, and food services, 

suggesting PCE growth was weak to start the year. March data will be 

released on April 18. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]