US, UK Retail Sales Decline Amid Tariff Concerns

US retail spending decreased by 0.22% in February, attributed to concerns over tariffs and a decline in consumer confidence, yet year-over-year growth remained strong at 4.11%, according to the National Retail Federation (NRF). The dip followed President Trump's tariff announcements, which included a 10% tariff on Chinese imports and a 25% tariff on goods from Canada and Mexico, contributing to a decrease in consumer sentiment. Despite the monthly decline, online sales surged by 36.51% compared to the previous year, indicating resilience within certain sectors. NRF President Matthew Shay noted that inflation fears and policy uncertainty led to more cautious spending behaviors among consumers. For the first two months of 2025, total retail sales increased 4.41% year-over-year, while core sales grew 4.91%, surpassing the overall growth rate for 2024. The economic outlook remains fundamentally strong, despite the short-term challenges posed by external factors.