Retail sales report a litmus test of US consumers’ health: Lloyds Bank

Quotes from Lloyds Bank:

- With February's employment report disappointing with soft earnings, US retail sales (Thu) will provide a further steer on the strength of domestic consumption, the principal recent driver of growth overall. 

- Stable-to-higher gasoline prices point to firmer headline retail numbers than in recent months, with the 'control group' print, feeding into GDP estimates, expected to show a gain of 0.4%. Friday's University of Michigan sentiment survey for March, along with questions about inflation expectations, will provide further colour. 

- Although recent US data have been mixed relative to expectations, in contrast to improvement in the Eurozone, marked absolute softness would be needed to raise doubts about the Fed's readiness to drop its 'patient' language in the statement of its March 17-18 meeting.