In what could be viewed as a vivid illustration of an affluent boom in the US economic landscape, US retail sales hit a 10-month peak in March as a one-off $1,400 in pay-check for most adult Americans alongside additional state jobless aids from the Government had enabled a broad-based reopening of economy, paving ways for the fastest growth in gross US outputs since 1984 as forecasted by the Biden Administration.
Aside from that, other economic data released on Thursday had unleashed that the number of Americans filing for first-time state unemployment benefits fell to the lowest level since the early days of pandemic-led mandatory lockdown in March 2020.
Nonetheless, a 10-month peak US retail sales data coupled with a sharp drop in initial jobless claims, would unlikely to sway the US Federal Reserve away from its dovish policy stance despite an uptick in inflation indicators, which many analysts including the US Fed Chair Jerome Powell claimed to be short-lived.
US retail sales spike to 10-month high; jobless claims fall to lowest since March 2020
Concomitantly, according to US Commerce Department data released earlier in the day, US retail sales bounced back by 9.8 per cent in March, marking off the largest gain since May 2020, as auto sales surged 15.1 per cent, while sales at clothing stores climbed as much as 18.3 per cent.
Besides, Labour Department said in a statement that the number of Americans filing for initial jobless claims fell 193,000 to a seasonally adjusted 576,000 during the week that ended on April 10, branding a sharp upswing in labour market activities.
Meanwhile, addressing to a flourishing US economy which might be on the brisk of a full-fledged recovery from the pandemic-induced slump, a chief economist at FHN Financial in New York, Chris Low said following the announcements, “Demand is booming right now.
Fed officials up to now have said they expect this boost in demand to be fleeting, and will not consider changes in policy until the labor market is at full employment and price levels increase at a sustained pace. Their resolve will be tested in the next couple of months. ”