U.S. retail sales dropped by the most in nearly two years in January, likely weighed down by frigid temperatures, wildfires and motor vehicle shortages, suggesting a sharp slowdown in economic growth early in the first quarter.
But the larger-than-expected and across the board decline in retail sales reported by the Commerce Department on Friday probably does not reflect a material shift in consumer spending as it also followed four straight months of hefty increases.
A sharp upward revision to December’s sales took some of the sting from the report. Economists also noted that it was difficult to strip out large seasonal swings from the data at the turn of the year, which was also evident in the January consumer inflation report.
After the election but before the inauguration we bought a replacement refrigerator before we absolutely needed to because the one we were looking at was made in Mexico. It seems kind of conspiratorial to buy it when, at that time, Trump was just muttering about tariffs on Canada and Mexico. Now it looks like good forethought and planning.
My dad also moved up his plans to buy a Ford Maverick specifically because of the Mexico tariffs. (They finally made the AWD Hybrid version he wanted to replace his old Ranger that has 240k miles on it.)
With the number of parts and final assembly done in Mexico, it would have probably increased the price of the truck by more than 10k.
Yeah, we’re in Canada. I made a big purchase because I was expecting tariffs to tank the Canadian dollar.
I’m happy to say that neither of those things have happened. Yet.
Get ready for the Canadian dollar to be worth more than the US dollar.
looks over to my jar of loonies and toonies
i might just have a retirement fund after all.