Retail sales in US fell 0.8% bringing total sales down to $700.3 billion in January from the strong pace in December when they rose a revised 0.4%, according to the Commerce Department’s report on Thursday, Feb 15.
Excluding the auto sector, retail sales fell 0.6 percent in January from December and removing gasoline stations, sales were down 0.8 percent over the same period.
The fall was bigger than the 0.20% drop that economists projected and marked the lowest monthly figure since March of 2023. A larger than expected slowdown in spending, if it persists, could dim hopes that consumption continues its role as a key economic driver.
Analysts attribute the auto sector weakening to higher rates on loans and the unwinding of pent up demand after supply chain problems were resolved.
Other areas showing weakness included building material and supplies, as well as health and personal care. But spending at restaurants and bars continued to hold up, expanding 0.7 percent.
Economic data is generally difficult to seasonally adjust at the start of the year, a process that has also been made difficult by distortions caused by the COVID-19 pandemic.
Commerce Department data also showed
Retail sales fall 0.8% in January; December revised down.
Core retail sales drop 0.4%; December sales revised lower.
Weekly jobless claims decline 8,000 to 212,000.
Manufacturing output falls 0.5%; import prices jump 0.8%.
