US retail sales declined in January by much more than expected

Spending at US retailers tumbled much more than expected in January as cold weather across the United States kept shoppers at home after a robust holiday spending season.

Posted 1:36 p.m. Feb 15 — Updated 1:48 p.m. Feb 15

Bryan Mena

, CNN

CNN — Spending at US retailers tumbled much more than expected in January as cold weather across the United States kept shoppers at home after a robust holiday spending season.

It’s the second decline over the past 10 months.

Retail sales, which captures spending on all goods and food services, fell 0.8% in January, the Commerce Department reported Thursday, breaking a two-month streak of increases. That was even lower than the downwardly revised 0.4% increase in December, and well below economists’ expectations of a 0.1% decline, according to FactSet. The figures are adjusted for seasonal swings but not inflation.

Americans are being squeezed by elevated interest rates, still-high inflation and a harder time accessing credit, as many continue to draw down their pandemic savings, but one major bright spot is that the job market remains in decent shape. Robust earnings results from major technology companies have also powered gains in the stock market, helping boost some Americans’ wealth.

While there aren’t any glaring signs of a US recession for now, economists widely expect the economy to run at a slower pace in the coming months.

This story is developing and will be updated.

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