J.P, Morgan: US retail sales bounced back in January

J.P, Morgan: US retail sales bounced back in January

February 21, 2022

Economy

US retail sales bounced back impressively in January and are a good sign that the consumer remains well supported. December’s slump in retail sales had raised question marks about the sustainability of the US consumer supporting strong economic growth this year.

While one month’s data is insufficient to completely allay this worry, the strong rebound in January lends credence to the idea that this slowdown was mostly driven by Omicron. In aggregate, consumer balance sheets are in a good place – household debt to GDP has declined and accumulated savings and wealth gains from the pandemic are high. Going forward, high levels of inflation do present a potential headwind to be watchful of, but for now consumers seem to be happy to carry on spending.

USD billions

21022022

Source: Census Bureau, Refinitiv Datastream, J.P. Morgan Asset Management. Data as of 18 February 2022.

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