Retail sales in the US did not reach the expected number, and it was drastically affected by the growing number of new Covid cases. Household income is also decreasing in the US, and this has furthermore added pressure to the already slowing down economic recovery. This is the second straight month where a decline in sales was reported, and the Commerce Department has stated that another stimulus check might be an issue to help people recover. Economists are predicting that vaccines and stimulus checks will not stop the economy from slowing down, and this will be the case until the end of Q1 of 2021.
Federal Reserve has pledged to give money to the economy to fight the ongoing pandemic-induced recession. Chief economist Gus Faucher has stated that right now, the economy is dealing with a rough patch, and even though the vaccine is out, the conditions will continue to remain soft for a while. Last month the retail sales dropped by almost 1 percent, and it must be noted that this is also a part of back to back decline that we are witnessing since April. The sale of electronics also fell by 3.2 percent, and there was no decrease in sales for hobby items, musical instruments, book stores, and furniture.