Feb. 15 (UPI) — January retail sales measured by a Census Bureau estimate Thursday were down 0.8% to $700.3 billion from the previous month.
Retail sales were 1.1% lower from December 2023 and down 0.2% below last year, according to the Census Bureau.
But retail sales from November 2023 through January 2024 were up.
“Total sales for the November 2023 through January 2024 period were up 3.1% from the same period a year ago,” the Census Bureau said in a statement. “The November 2023 to December 2023 percent change was revised from up 0.6% to up 0.4%.”
Non-store retail sales rose 6.4% from last year while food services and drinking places sales were up 6.3% from January 2023.
According to the Census Bureau report, building and gardening store sales dropped by 4.1% and miscellaneous store sales fell by 3%.
The drop in consumer spending was more than the Dow Jones economists expectation of a 0.3% decline.
“It’s a weak report, but not a fundamental shift in consumer spending,” said Robert Frick, corporate economist for Navy Federal Credit Union. “December was high due to holiday shopping, and January saw drops in those spending categories, plus frigid weather plus an unfavorable seasonal adjustment. Consumer spending likely won’t be great this year, but with real wage gains and increasing employment it should be plenty to help keep the economy expanding.”
The biggest drops in consumer spending compared with a year ago were 7.5% drops at both furniture stores and gasoline stations.
The largest increases in spending from a year ago were an 8.2% increase at non-store retailers and a 6.7% rise in health and personal care store spending.
Retail spending was up 0.6% in December from November numbers and 5.6% higher than December 2022.
The Census Bureau found retail sales were 3.2% higher overall for 2023 compared with 2022.
