US retail sales declined by 0.2% in January, marking a slowdown from December's flat performance but outperforming economists' forecasts of a 0.3% drop. Core sales excluding autos remained unchanged. Year-over-year, sales rose by 3.2%.
The US Census Bureau's Advance Retail Sales Report indicated that headline retail sales slipped 0.2% in January. This figure represents a step down from December's 0.0% reading, yet it was milder than the anticipated 0.3% decline.
Core retail sales, which exclude automobiles, were flat at 0.0% for January, matching December's level but falling short of expectations for a 0.1% increase. Despite the monthly dip, retail sales showed resilience on an annual basis, climbing 3.2% compared to the previous year.
The report highlights a cautious consumer spending environment, with the less severe drop suggesting underlying strength amid economic uncertainties. Jennifer Nash, author of the analysis, noted that consumer spending was down less than feared based on the Census Bureau data.
This data provides insight into early 2026 economic trends, reflecting adjustments in purchasing behavior following the holiday season.
