Feb. 14 (UPI) — U.S. retail sales for January fell more than expected, according to a Department of Commerce report released Friday.
Seasonally adjusted retail sales fell 0.9% in January to $723.9 billion but were up 4.2% from January 2024.
The Dow Jones estimate expected a drop of 0.2%.
“Retail trade sales were down 1.2% from December 2024, and up 4% from last year,” the Census Bureau said in a statement. “Motor vehicle and parts dealers were up 6.4% from last year, while food service and drinking places were up 5.4% from January 2024.”
The weakening sales numbers could foretell a weakening U.S. first quarter economy.
“The drop was dramatic, but several mitigating factors show there’s no cause for alarm,” Navy Federal Credit Union’s Robert Frick said. “Some of it can be chalked up to bad weather, and some to auto sales tanking in January after an unusual surge in December due to fat dealer incentives.”
“Total sales for the November 2024 through January 2025 period were up 4.2% from the same period a year ago,” the Census Bureau statement said. “The November 2024 to December 2024 percent change was revised from up 0.4% to up 0.7%.”
Motor vehicle and parts dealer sales were up 6.4% over last year while food and drinking sales were up 6.4%, according to the Census Bureau.
