Goldman Sachs described this morning’s retail sales report a “significant disappointment”. As a result, they’re cutting Q1 GDP estimates to 1.9%. The headline figure came in at a monthly decrease of 0.4% as auto sales disappointed and broader trends remained soft. The cold weather was a contributing factor, but the general sluggishness in the US economy is persisting. This report brought the year over year growth to just 3%, which is growth, but is also the slowest rate of growth since August 2010.
Muddle through is here to stay. And muddle through means QE is likely here to stay.