US Retail Sales Fall 0.2% in January, Weak Autos and Weather Weigh
United States retail sales fell 0.2% in January, weighed down by weakness at auto dealerships as winter weather disrupted some shopping activity. Commerce Department data showed on Friday (March 6) that retail purchases (unadjusted for inflation) weakened after remaining unchanged in December, while sales outside auto dealerships were relatively stagnant.
The decline was broad-based: seven of 13 categories recorded declines. Motor vehicle sales fell 0.9%, followed by declines in receipts at clothing retailers, gas stations, and health and personal care stores.
However, the component used as a benchmark for goods spending in calculating GDP showed more stable signals. Control-group sales rose 0.3%, indicating that core goods consumption remained strong despite the weakening retail headlines.
The slowdown in spending at the start of the year coincided with market concerns about labor market conditions and the cost of living. Several major retail companies also highlighted more cautious consumer behavior, particularly in the lower-middle segment, although higher-income households still have room for non-essential spending.
Weather factors were also a major drag. A prolonged winter storm with snow and ice in the central and eastern US was seen as disrupting mobility and shopping activity. Spending at restaurants and bars—the only service category in the retail report—fell 0.2%, with some operators noting extreme temperatures and storms also depressed sales.
Source: Newsmaker.id
