US Retail Sales Decline 1.07% in January, Yearly Growth Remains Strong

In January 2025, US retail spending experienced a seasonal decline following the holiday surge in December, with total retail sales down 1.07% month-over-month but showing a robust year-over-year growth of 5.44%, according to the CNBC/NRF Retail Monitor. Core retail sales, excluding automobiles and gasoline, also fell by 1.27% month-over-month, but increased 5.72% year-over-year. Matthew Shay, CEO of the National Retail Federation, attributed this monthly pullback to consumers taking a breather after a strong holiday season, while still indicating overall consumer strength due to a solid job market. Online sales saw significant growth, surging 30.49% annually and contributing to the positive year-over-year trends. Despite the monthly declines in several categories, seven out of nine categories reported year-over-year increases, particularly in online and health and personal care sectors. The data highlights a shift in consumer behavior, with shoppers being more value-conscious and selective in their spending.