USA retail sales rise for third month in row

Sales at online retailers jumped 1.6 percent, but receipts at sporting goods and hobby stores fell 2.1 percent. A gauge of consumer sentiment also slipped in February, according to separate data released Friday.

That being said, falling oil prices and harsh winter storms that pummeled much of the Northeast with snow and ice last month did temper spending in some areas of the economy.

The US Consensus Bureau reported this morning that advance estimates of retail sales for January were $449.9 billion, an increase of 0.2%. Analysts were expecting a month-over-month gain of 0.2% and a rise of 0.1%, excluding autos and auto parts.

Receipts at gasoline stations dropped 3.1 percent last month, the most since September, the retail sales report showed.

Retail sales are a key component of consumer spending, which accounts for more than two-thirds of all United States economic activity. Economists were looking for import prices to come in at -1.4 percent after a previously reported 1.2 percent fall in December. In addition, the same figure for December 2015 was revised to an increase of 0.1 percent, from a decline of 0.3 percent.

The U.S. Dollar rose on Friday, pressuring the Euro, British Pound and gold, after the U.S. Commerce Department reported better-than-expected retail sales. Preliminary University of Michigan Consumer Sentiment came in below expectations at 90.7 versus an estimate of 92.6. Excluding the volatile auto and gas categories, they forecast that retail sales were flat compared to December.

The Fed is projecting continued modest USA economic growth and gradual increases in inflation and interest rates in the months ahead.

The prices the US paid for imported goods, also known as import price index, fell to 1.1 percent in January due to low oil prices. Import prices have declined in 17 of the last 19 months, reflecting the robust dollar and plunging oil prices.

Ms. Yellen said the central bank will have more to say about the economic outlook following its next policy meeting in mid-March, but ” a lot has happened since” the Fed’s December meeting.

In news affecting the GBP/USD, British construction spending output fell more than expected in the fourth quarter, dragged down by reduced infrastructure spending despite house building increasing at the fastest pace since the start of 2014.

The retail control group sales, which are factored into gross domestic product, had a 0.6 percent increase above the market expectation of 0.3 percent.