US retail sales plummeted in January, dropping 0.9% from the previous month, according to the Commerce Department. The decline was largely due to cold weather that kept Americans indoors, negatively impacting car dealers and most other stores. Sales also declined at auto dealers (-2.8%), furniture stores (-2.5%), home and garden centers (-1.4%), and online retailers (-1.9%).
However, some sectors experienced an uptick in sales, including general merchandise stores (+0.7%) and restaurants and bars (+2.3%). The low unemployment rate (4%) suggests that the economy is still expanding, despite concerns over falling consumer confidence.
The decline in retail sales comes as inflation ticks higher, with grocery prices jumping 1.4% in January due to rising egg prices. President Trump’s tariff threats also pose a risk to shoppers, who may face increased costs.
Despite these challenges, hiring and wage growth remain steady, indicating that the economy is still growing. The Federal Reserve’s efforts to cool inflation through higher interest rates are ongoing.
Source: https://abcnews.go.com/Business/wireStory/us-retail-sales-plunged-month-consumers-pulled-back-118821311