US sees softer than expected retail sales in February
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The news: US retail sales increased by less than forecast in February, while January’s figures were also revised lower, underscoring concerns of a consumer spending pullback.
The numbers: US retail sales increased 0.2% in February according to data from the Commerce Department released on Monday. Figures for January were revised lower to 1.2%, the biggest drop since July 2021.
The context: Covering spending on goods, the retail sales report is viewed as particularly relevant at present, given President Donald Trump’s aggressive trade tariffs across large amounts of imports from the US’ key trade partners.
Spending at restaurants and bars declined by the most in a year, while seven of the report's 13 categories reported decreases.
The data suggests that consumer spending could be slowing as tariffs stoke inflationary pressure. Investors will be paying close attention to the US Federal Reserve’s meeting later this week, where policymakers are expected to hold rates steady.
The source: US Retail Sales report February
