US Economy Is Cooling Steadily as Consumers, Factories Pull Back
- Retail sales slipped 1%, manufacturing output dropped 0.5%
- Michigan data showed jump in year-ahead inflation expectations
This article is for subscribers only.
The US economy moderated gradually as the first quarter drew to a close, with elevated inflation and borrowing costs restricting household spending and manufacturing activity.
March retail sales slid by the most in four months, largely explained by a slump in receipts at gas stations and a slowdown at auto dealers. A drop in factory output exceeded expectations, though upward revisions to the prior two months allowed production to squeeze out a modest advance in the first quarter.