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The U.S. Census Bureau reported modest month-over-month retail sales growth in February amid customer worries about inflation and national policy decisions from the White House, according to the National Retail Federation (NRF).
“Lower-than-expected consumer spending in the first couple of months of the year likely reflected payback for very strong spending in the fourth quarter and weather-related events since then,” says Jack Kleinhenz, NRF chief economist. “Moreover, these results show that households are apprehensive and carefully navigating lingering inflation and turmoil related to changing economic policies. Regardless of the softer spending, consumer fundamentals remain healthy and intact so far, supported by low unemployment, steady income growth and other household finances. American shoppers will likely continue to spend as long as unemployment remains low and job growth continues.”
Overall retail sales in February were up 0.2% seasonally adjusted month over month and up 3.1% unadjusted year over year. February core retail sales were up 0.9% seasonally adjusted month over month but down 0.2% unadjusted year over year due to comparison against unusually high sales in February 2024.
These results come after core retail sales increased 4.2% year over year during the 2024 holiday season and 3.6% for the full year.
