It Was Cold In January, But Spring Is Coming!

Retail sales fell 0.8% m/m in January, much weaker than expected (chart). Leading the way down was a 4.1% drop in building materials & garden equipment & supplies.

Following the release of January's employment report, we anticipated some weakness in retail sales because the 0.2% increase in payrolls was offset by an odd 0.6% drop in average weekly hours (chart).