US retail sales fall 0.2% in January
US retail sales dropped by 0.2% in January 2026, contradicting some forecasts, which ranged from slight growth to a decline.
Americans spent about $733.5 billion, down from December but still 3.2% higher than last year.
The dip has sparked some concern about how people are spending lately.
Online shopping grew by almost 2%
Several sectors felt the pinch: health and personal care stores fell 3%, gas stations were down nearly 3%, clothing stores slipped by 1.7%, and auto sales dipped too.
Michael Pearce from Oxford Economics pointed to harsh winter weather as a big reason for the slowdown, but online shopping actually grew by almost 2%.
Rising fuel prices due to global tensions could push inflation up, though Ben Ayers at Nationwide thinks spending might bounce back soon as tax refunds and better weather roll in.