The sales slump was steep in sporting goods, auto sales, music and bookstores
US retail sales fell 0.9% in January, way below analysts’ expectation of a 0.2% drop, marking the steepest decline since March 2023, Commerce Department data revealed.
The slump was driven by severe winter weather, California wildfires and economic uncertainty stemming from President Donald Trump’s new tariffs.
Steep drops were observed in sales at sporting goods, music and bookstores (-4.6%), auto sales (-3%), online stores (-1.9%) and furniture and home furnishing stores (-1.7%).
Meanwhile, gas stations and food establishments saw modest gains of 0.9% each.
Economists warn that if February sales don’t rebound, it could signal a broader slowdown.