Retail sales fell more than expected in January, biggest drop in eight months
CNN • • general
Key Points:
- US retail sales unexpectedly declined by 0.2% in January, marking the largest drop since May, influenced by weak consumer confidence and severe cold weather.
- The decline was broad-based, with department stores, personal care shops, and gasoline stations experiencing the steepest decreases.
- Despite the overall drop, the retail sales control group, which excludes volatile sectors, rose by 0.35%, aligning with economists' expectations and indicating steadier underlying demand.
- Economists remain cautiously optimistic that larger tax refunds in 2026 will boost consumer spending in the first half of the year.
- The January retail sales report was delayed due to last year’s government shutdown and excludes inflation adjustments.
