April 13, 2016

THE WORD “UNEXPECTEDLY” MAKES ITS EXPECTED APPEARANCE IN THIS STORY: Weak U.S. retail sales, inflation data reinforce Fed caution on rates.

U.S. retail sales unexpectedly fell in March as households cut back on purchases of automobiles and other items, further evidence that economic growth stumbled in the first quarter.

Other data on Wednesday showed a surprise drop in producer prices last month as rising energy prices were offset by a decline in the cost of services.

The two reports suggested the Federal Reserve will probably not raise interest rates until later this year.

“The data solidifies the well-entrenched narrative of a very weak first quarter for the U.S. economy. For the Federal Reserve … it argues for continued caution,” said Millan Mulraine, deputy chief economist at TD Securities in New York.

But maybe this is the year we finally get that Summer of Recovery.

InstaPundit is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.