US to see better consumer spending growth ahead

For the first time in three months, gasoline stations could not be blamed for the decline as the average cost of retail gas bounced 4.7% M/M in Feb. Excluding gasoline and autos, core sales also fell by -0.2% M/M. 

Aside from autos, retailers experiencing the largest declines include building materials stores (-2.3%), miscellaneous stores (-1.2%), and electronics stores (-1.2%).

TD Economics notes as follows in a report on Thursday:

• This was the first retail sales report in a while where gas prices could not be blamed for the weak showing. The headline figure has fallen for three consecutive months, and even the core measures are remarkably weak. While retail sales represents only a minority of total consumer expenditures, consumer spending over the first quarter is likely to be weaker than in recent quarters, which poses downside risk for overall GDP growth.
  
  
• It shouldn't come as a surprise that the two weakest categories in the month were autos and building materials, two of the categories most  impacted by harsh winter weather. In contrast, online retailers had their best month since 2013. Weakness in both these categories is likely to rebound as more clement weather sets in.
  
  
• Overall, our core view remains that the conditions are ripe for robust consumer spending this year. Strong job growth, high consumer confidence, and a savings rate that is now the highest since 2012, suggests better consumer spending growth ahead.