US Retail Sales Decrease 0.9% in January

U.S. retail sales fell by 0.9% in January, marking a significant decline that surpassed analysts' expectations of a 0.2% decrease. This downturn was attributed to various factors, including adverse weather conditions that kept consumers indoors, particularly affecting car dealerships and other retail sectors. Sales of motor vehicles plummeted by 2.8%, with other categories like furniture and sporting goods reporting declines as well. While year-on-year retail sales increased by 4.2%, a core measure excluding autos and gas showed a 0.8% drop, raising concerns about consumer spending's contribution to economic growth. Despite the slowdown, a strong labor market and rising household wealth offer some support for future spending. The looming impact of trade tariffs and weather disruptions suggests that the retail landscape may face ongoing challenges in the near term.