Cold Weather Chills Retail Sales, Jobless Claims Up [View all]

[Purveyor]

Source: Bloomberg

WASHINGTON (Reuters) - U.S. retail sales fell unexpectedly in January and more Americans filed for jobless benefits last week, the latest signs the economy started the year on softer footing as unseasonably cold weather took its toll.

Large parts of the country have been gripped by freezing temperatures and snow storms, which have been blamed for weak hiring over the past two months. Economists, however, are not worried yet and look for a rebound in the second quarter.

"Today's data unequivocally show that the unusually cold winter weather is weighing on economic activity. Consumer spending has literally frozen," said Harm Bandholz, chief economist at UniCredit Research in New York.

Retail sales fell 0.4 percent last month, led by a tumble in automobile sales and categories like clothing, furniture stores and restaurants that depend of foot traffic. Economists had expected retail sales to hold steady.


Read more: http://www.chicagotribune.com/business/sns-rt-us-usa-economy-jobs-20140213,0,582980.story