US Commerce Department data released earlier on Tuesday had revealed that US retail sales had been hammered last month, largely due to a rare deep freeze across the country, while a severe wintry chill in February had taken a substantial scale of bite in manufacturing activity, though Wall Street analysts were quoted saying that the latest backlash on US economy would unlikely to sustain as US Government has been set to roll out another round of trillion-dollar stimulus package mostly to lower- alongside lower-middle-income households.
On top of that, last month’s harsh winter weather had swept away a large chuck of US productions at factories and refineries in the US state of Texas alongside other southwestern part of the country, smothering a meteoric high-tide in manufacturing activities despite a torrential rise in orders for US-borne core capital goods.
Nonetheless, latest headwind on US economy would likely to be short-lived as beforementioned, as the US Government of President Joe Biden has been eyeing the country’s strongest recovery since 1984 this year, while the US Fed, which started off a two-day meet earlier in the day, would likely to underscore the US economy’s resilience against a year of agonizing fiscal pain stemming off the pandemic outbreak.
US retail sales, manufacturing activity slumped last month
In tandem, according to US Commerce Department data unveiled earlier in the day, US retail sales took a lofty header of 3.0 per cent in February compared to same period a year earlier, though, revised January retail sales data had shown an upswing to 7.6 per cent instead a rise of 5.3 per cent reported earlier, while manufacturing activities tumbled as much as 3.1 per cent last month, a separate report from Fed had unfurled.
Meanwhile, citing that there was no reason to be fretted over February data given the impacts of a whopping $1.9 trillion fiscal stimulus package, a chief economist at Naroff Economics in Holland, Pennsylvania, Joel Naroff said, “We knew the economy took a major hit in February due to the brutally cold weather and a lot of snow.
No reason to panic over the February numbers, the economy is moving forward rapidly and it should pick up the pace as the latest stimulus pay-out hits home”.