The numbers: Sales at U.S. retailers fell 3% in February due to a loss in government support and a bout of unusual bad weather, but business is expected to pick up again shortly after Washington sent $ 1,400 stimulus checks to most Americans.
Sales had risen 7.6% revised in January after the government issued $ 600 incentive checks before President Trump resigned. A slight slowdown was expected in February after the money ran out, but Democrat-led Congress agreed to make extra payments to bring the total to $ 2,000 for those who meet the income thresholds. .
The money is being put out now and it looks like a lot of it will be spent in March and April.
Economists surveyed by the Dow Jones and The Wall Street Journal had forecast a small 0.1% decline in retail sales.
Read: Consumers pay higher prices in February, CPI shows, as inflation continues to rise
Big picture: Sales spending is likely to accelerate in the coming months and not just because the government is burning money on Americans. More and more people are being vaccinated, coronavirus cases have plummeted and the economy is gaining momentum.
Read: The economy is poised for a rip-off after faster stimulation and coronavirus vaccinations
One growing concern: The rise in demand, coupled with a pandemic-related shortage, could push up prices for all types of goods and services. That could trigger unwanted inflation that will push interest rates even higher, making it harder to buy a car or a home.
Consumer spending accounts for 70% of U.S. economic activity and retail sales one-third of that.
Market response: Dow Jones industrial average DJIA,
and S&P 500 SPX,
ready to open slightly higher in trades Tuesday.