The U.S. retail sales unexpectedly declined in January, signaling softer consumer spending at the start of the year. The Commerce Department reported that retail sales fell 0.2 percent from December, marking the steepest monthly drop since May, according to CNN.
Economists surveyed by FactSet had expected sales to remain flat. Analysts said weak consumer confidence and severe winter weather across parts of the United States contributed to the slowdown.
Spending at US retailers unexpectedly fell in January as consumer confidence languished and harsh cold weather buffeted various parts of the country. https://t.co/9GmbWI6idl pic.twitter.com/n1JAoiwzl3
— CNN (@CNN) March 6, 2026
Several retail categories recorded sharp declines. Department store sales dropped 6 percent, while personal care retailers and gasoline stations also posted noticeable losses.
Despite the decline, a key measure known as the retail sales control group rose about 0.35 percent. Economists view this figure as a better indicator of underlying consumer demand because it excludes volatile categories such as gasoline and building materials.
Consumer spending remains critical to the U.S. economy because household purchases account for roughly two thirds of overall economic growth, CNN reported.
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TIPP Staff
