Retail Sales Drop More Than Expected in January, Plunging 0.9%

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Summary

Retail sales slumped 0.9% in January, down much more than expected

Retail sales slipped 0.9% for the month from an upwardly revised 0.7% gain in December, even worse than the Dow Jones estimate for a 0.2% decline. The sales totals are adjusted for seasonality but not inflation for a month, in which prices rose 0.5%. Excluding autos, prices fell 0.4%, also well off the consensus forecast for a 0.3% increase. A “control” measure that strips out several nonessential categories and figures directly into calculations for gross domestic product fell 0.8% after an upwardly revised increase of 0.8%. With consumer spending making up about two-thirds of all economic activity in the U.S., the sales numbers indicate a potential weakening in growth for the first quarter.

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CNBC

US retail sales plunged along with temperatures in January after a bustling holiday season

U.S. retail sales dropped sharply last month, in part because cold weather kept more Americans indoors, denting sales at car dealers and most other stores. Retail sales fell 0.9% in January from the previous month, the Commerce Department said, after two months of healthy gains. It was a much bigger drop than economists expected and the biggest decline in a year. The average temperature in January was the lowest since 1988, according to Pantheon Macroeconomics, and was particularly disruptive in the more temperate South. Devastating fires in Los Angeles may have also impacted spending.

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AP NEWS

January Retail Sales Slide 0.9% as Consumers Tighten Their Belts

Consumers kicked off 2025 with a more prudent approach to spending, with retail sales for January falling from a month prior. Yet while the report was a bad one, there’s no need to panic about the broader state of the consumer economy, economists said. The Census Bureau said Friday that retail sales slid 0.9% in January from December. Projections had them being largely unchanged, or down 0.05%, according to FactSet. Sales rose 4.2% on an annual basis.

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Barrons

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News Results

US retail sales plunged last month as consumers pulled back after busy holiday season

Retail sales dropped 0.9% in January from the previous month, the Commerce Department said. January's average temperature was the lowest since 1988. Devastating fires in Los Angeles may have also impacted spending. Still, hiring and wage growth have been steady, suggesting the economy is still expanding.

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MIDDLE

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Retail sales slump. Wildfires, cold snap and post-holiday blues depress spending.

Consumers took a breather from holiday shopping season and a severe cold snap in the U.S. kept people indoors

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Retail sales declined more than expected in January after several strong months of gains to end 2024.

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US retail sales post biggest drop in nearly two years amid winter freeze

U.S. retail sales dropped by the most in nearly two years in January, likely weighed down by frigid temperatures, wildfires and motor vehicle shortages, suggesting a sharp slowdown in economic growth early in the first quarter.

MIDDLE

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MIDDLE

5d ago

Retail Sales Fell in May But Core Sales Were Unexpectedly Strong

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Breitbart Business Digest: Consumers Say They’re Worried—But the Economy Isn’t Listening

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Retail Sales Disappoint In February, Despite Major Downward Revisions

February retail sales disappoint, rising just 0.2% MoM vs +0.6% exp. Food Services & Gas Stations saw the biggest drop in nominal sales. Non-store retailers (online) saw sales soar the most. On a non-seasonally-adjusted basis, retail sales are actually down YoY.

RIGHT

3mo ago

Tariff threats and uncertainty could weigh on consumers, drag down US economy, gov't report suggests

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Retail Sales Drop More Than Expected in January, Plunging 0.9%

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