ADVANCE MONTHLY SALES FOR RETAIL AND FOOD SERVICES, JANUARY 2020
Advance estimates of U.S. retail and food services sales for January 2020, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $529.8 billion, an increase of 0.3 percent (±0.4 percent)* from the previous month, and 4.4 percent (±0.7 percent) above January 2019.
Total sales for the November 2019 through January 2020 period were up 4.4 percent (±0.5 percent) from the same period a year ago. The November 2019 to December 2019 percent change was revised from up 0.3 percent (±0.4 percent)* to up 0.2 percent (±0.2 percent)*.
U.S. Consumer Price Inflation Remains Modest
The Consumer Price Index edged up minimally during January. The 0.1% uptick followed two months of 0.2% increase. Despite the weak yearend showing, the 2.5% y/y gain in the CPI was the largest since October 2018. The CPI excluding food & energy rose an expected 0.2% last month (2.3% y/y) after edging 0.1% higher in December.
Goods prices excluding food & energy also were tame, holding steady (-0.3% y/y) for the second consecutive month. (…)
Services prices rose 0.3%. The 3.1% y/y increase was the strongest since July 2018, up from 2.7% early last year. (…) Shelter costs also rose 0.4% (3.3% y/y) as rents increased 0.4% (3.8% y/y). The owners equivalent rent of primary residences gained 0.3% (3.4% y/y). (…) Medical care service prices rose 0.3% (5.1% y/y) for a second month while public transportation costs gained 0.2% (1.8% y/y). (…)
- The IHS Markit Materials Index (industrial commodities) fell to the lowest level since 2017. (The Daily Shot)
- Inflation-adjusted growth in weekly wages remains near zero. (The Daily Shot)
Source: IHS Markit
- The 30-year bond auction showed strong demand for US long-term paper. The auction yield was the lowest in history.
Virus Update
The death toll in China was 1,380 after adjustments for double-counting that had appeared to inflate the tally. Total cases topped 63,851, up 5,090. China said more than 1,700 medical workers contracted the virus as of Feb. 11.
China cannot be trusted on any statistic. We have suspected that for years, with plenty of evidence. Now we have absolute proof.
Superfast 5G Rollout Hits Slow Patch, Suppliers Say The 5G wireless rollout is showing signs of slowing, putting a dent in near-term sales prospects for some network gear and chip makers and potentially delaying some consumers’ access to promised lightning-fast data speeds.
(…) Industry officials say there is no common cause for the slowdown seen across multiple markets, with various countries affected by different dynamics. (…)
Research firm Gartner Inc. estimates companies spent more than $2 billion on 5G wireless infrastructure last year, more than triple the level in 2018. But spending growth is expected to slow somewhat this year, reaching about $4 billion.
Quinn Bolton, an analyst at Needham & Co., said delays in the build-out of 5G infrastructure in Asia and the U.S. were causing the slowdown. (…)
Xilinx Inc., a San Jose, Calif., chip maker, also cut its sales growth outlook and announced it was reducing its workforce by 7% because of U.S. restrictions on some trade with China and a slower 5G outlook. CEO Victor Peng said many telecom operators that spent heavily to put the initial 5G networks in place now are waiting to see if the spending generates anticipated returns before plowing more money into the infrastructure. (…)
Ericsson CEO Börje Ekholm said concerns around the use of Huawei Technologies Co. equipment also have affected deployments. (…) “This whole notion that this was a win for Ericsson and Nokia so far has not materialized.” (…)
AT&T Inc. CEO Randall Stephenson last month said the company’s 5G network covered 50 million people and was expected to reach the entire U.S. in the second quarter. “We’re not slowing down,” he said.
Verizon Communications Inc. Chief Executive Hans Vestberg last month projected fast growth of the company’s 5G network, though he said it would be more pronounced next year.
In China, a key market for 5G handset sales, network rollout plans remain broadly on track, according to analysts. (…)
U.S. Charges Chinese Tech Giant Huawei With Racketeering Huawei Technologies and two of its U.S. subsidiaries were charged with racketeering conspiracy and conspiracy to steal trade secrets in a new federal indictment.
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U.S. accuses Huawei of stealing trade secrets, assisting Iran
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U.S. Officials Say Huawei Can Covertly Access Telecom Networks
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Telus to launch 5G network with Huawei gear this year Telecom is betting that Ottawa will allow equipment from the Chinese company to be used in 5G infrastructure