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Recent data released by the U.S. Census Bureau reveals a slow down of retail sales in January following a strong holiday season, according to Jack Kleinhenz, National Retail Federation (NRF) Chief Economist. Despite the slow month at the beginning of the year, retail sales still rose year over year.
Overall retail sales in January were down 0.9% seasonally adjusted month over month but up 4.2% unadjusted year over year. Core retail sales, defined as sales excluding automobile dealers, gasoline stations and restaurants by the NRF, were also down 0.9% month over month unadjusted but up 4% unadjusted year over year.
During the 2024 holiday season, core retail sales grew 4% year over year and grew 3.6% for the full year in 2024.
“It’s reasonable to expect some slowdown from the vigorous 2024 holiday season, so January’s numbers are not a surprise and don’t contradict the consumer spending trends we experienced,” says Kleinhenz. “The slower spending reflects weaker payroll growth in January and higher prices remain a challenge for most households. Cold weather in many parts of the country and wildfires in California were likely headwinds that disrupted demand and consumer patterns. Nonetheless, these results point to a stable economy and provide a solid start to 2025.”
