On Friday, investors will get the latest monthly data on retail sales and consumer sentiment. Last week’s nonfarm payrolls report was much weaker than expected.
Steve Goldstein at MarketWatch reports that there is concern consumers “will by now have adjusted their spending patterns to the elimination of the payroll tax break, though it’s probably too soon for the sequester to play a role.”
“What we’re seeing is that people are definitely cautious, but they are still continuing to spend, at least the ones who are fully employed,” said Raj Kuman, partner at the consulting firm A.T. Kearney, in the story.
Economists are forecasting that March retail sales slowed after rising 1.1% in February.
“A March slowdown in hiring combined with little growth in wages may make it difficult for household spending, which account for about 70% of the economy, to extend gains seen at the end of 2012 and the first two months of this year,” Bloomberg News reports. “Nonetheless, Americans are finding relief in falling gasoline prices and cheaper borrowing costs, which will prevent a slump.”
Consumer Discretionary Select Sector SPDR
Full disclosure: Tom Lydon’s clients own SPY.