Slumping Sales

Inflation-adjusted retail sales slumped in March and were no higher at the end of 17Q1 than they were on 12/31/16; their worst performance since mid-2012. Moreover, inflation as measured by the core CPI, which excludes food and energy, slumped for the second straight month, and suggests retailers are unable to raise prices due weak consumer demand, probably due to weak real wage growth. Q1 GDP won’t exceed 1%; disappointing.