US Retail Sales Experience Significant Decline Amid Weather and Economic Uncertainty
In January, US retail sales dropped 0.9%, marking the steepest decline since March 2023, influenced by harsh winter weather and evolving consumer sentiment.
U.S. consumers put a lid on their spending to kick off 2025, potentially indicating weaker economic growth prospects.
US Retail Sales Record Sharpest Drop Since March 2023
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The larger-than-expected decline in retail sales reported by the Commerce Department on Friday was across the board.
Retail sales post largest drop in nearly two years in January amid tariff uncertainty
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The decline could reflect declines in consumer confidence that were picked up in two recent surveys.
U.S. retail sales plunged last month as consumers pulled back after busy holiday season
Washington Times·1M·Mostly ReliableThis source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.Leans RightThis outlet slightly leans right.
Summary
US retail sales fell 0.9% in January, the largest drop since March 2023, as cold weather and wildfires affected shopping patterns. Sales at auto dealerships dropped 2.8%, while declines were seen across the board, including online and furniture sales. Consumer confidence appears to be weakening, with inflation expectations rising. Despite this, labor market support and wage growth suggest the economy is still expanding. Economists caution against overreaction, indicating that bad weather and disasters could distort monthly performance. Year-on-year, retail sales remain up 4.2%, with expectations of recovery as conditions improve.
Perspectives
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