February retail sales in the United States grew modestly from the previous month and more robustly year over year, according to a report by the U.S. Census Bureau.
In commenting on the report, National Retail Federation Chief Economist Jack Kleinhenz noted consumer worries over inflation and Washington policy decisions are likely keeping consumers cautious in their spending.
The Census Bureau announced overall retail sales in February were up 0.2% seasonally adjusted month over month and 3.1% unadjusted year over year. The February numbers were mixed when compared to January, when retail sales slipped 1.2% month over month while increasing 3.9% year over year.
February’s core retail sales as defined by NRF — based on Census Bureau data but excluding automobile dealers, gasoline stations and restaurants — gained 0.9% seasonally adjusted month over month and retreated 0.2% unadjusted year over year, which NRF attributed to unusually high sales in February 2024. Core sales were down 1.2% year over year on a three-month moving average, with February of last year again skewing the trend.
The results come after core retail sales grew 4.2% year over year in the 2024 holiday season and increased 3.6% for the full year.
The recently released CNBC/NRF Retail Monitor report stated core retail sales slipped 0.22% seasonally adjusted month over month in February but gained 4.11% unadjusted year over year. The numbers compare with a decrease of 1.27% month over month and an increase of 5.72% year over year in January.
“Lower-than-expected consumer spending in the first couple of months of the year likely reflected payback for very strong spending in the fourth quarter and weather-related events since then,” Kleinhenz said. “Moreover, these results show that households are apprehensive and carefully navigating lingering inflation and turmoil related to changing economic policies. Regardless of the softer spending, consumer fundamentals remain healthy and intact so far, supported by low unemployment, steady income growth and other household finances. American shoppers will likely continue to spend as long as unemployment remains low and job growth continues.”
