February retail sales up 0.6%, yet fissures emerge in what has been a driving force for US economy
American shoppers picked up their spending a bit in February after pulling back the previous month
NEW YORK — Americans picked up their spending a bit in February after pulling back the previous month. But last month’s gain was weaker than expected, and January’s decline was revised even lower, suggesting that many are growing more cautious with their money.
Retail sales rose 0.6% last month after falling a revised 1.1% in January, dragged down in part by inclement weather, according to the Commerce Department's report on Thursday.
February's number was also lifted in part by higher gas prices as well as higher auto sales and a rebound in building materials, which were depressed by severe weather in January. Excluding sales from gas stations and auto dealers, sales rose 0.3%.
The national average gas price Thursday was $3.41 per gallon, per AAA, up from$3.39 a week ago, and $3.26 last month.
Government retail data isn't adjusted for inflation, which ticked up 0.4% from January to February, higher than the previous month’s figure of 0.3%, according to the latest government report. So retailers only eked out a slight increase accounting for inflation.
“February retail sales provide further proof that spending on discretionary goods in 2024 is likely to be soft following several years of strong growth and as consumer health – albeit still relatively strong – is somewhat weighed down by inflation and reduced savings," said David Silverman, senior director at Fitch Ratings.
The report also reflects an ongoing spending shift away from goods toward services. The snapshot offers only a partial look at consumer spending and doesn’t include many services, including travel and hotel lodges. But the lone services category —
Read more on abcnews.go.com
