US Retail Sales Dramatically Shrink-Know Details

The US retails sales have witnessed a downfall across all the sectors in the Month of March. This has been shown by official figures and the fall is the cause of the very recent rise in tax which has affected all the consumers. According to the U.S commerce department, the consumers spent $418bn, a plunge of 0.4 % on the previous month. This was the second decline in three months.

Retail Sales

Business Loss

In early 2013, payroll tax increase was introduced and the analysts have guessed that the fall in spending might be due to these reasons. The sales have become extremely low. Departmental stores, car dealers, electronic retailers, grocery stores and sports goods store, all of them reported a reduction in business. It has very much affected their earning.

The Stagnant Economy

After the figures of both January and February were revised, the picture showed the stagnant U.S economy. This year, there is an expectation of the U.S economy to grow by 2% this year but still the chances are fragile.

Shrinkage In The Job Market

Can you believe that last month, job figures have shown less than even 90,000 new jobs? The population is growing at a tremendous rate so the amount of job creations is lesser. This is resulting in a misbalance in the employment levels.

The payroll tax rise means someone who draws an annual salary of $50, 000 will collect $1,000 less this year. According to Paul Dales, an economist at ‘Capital economics’ he predicted that the slowdown would not be a prolonged one.

Do you think there will be a severe growth in the economy in recent years, it’s a doubt?


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