(Bloomberg) -- U.S. retail sales unexpectedly declined in January and December receipts were revised lower, indicating consumer demand in the first quarter may cool, according to Commerce Department figures released Wednesday.
Highlights of Retail Sales (January) |
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Key Takeaways
The decrease in January sales and the downward revision to December were spread throughout the major retail categories. The soft report suggests consumer spending, the biggest part of the economy, started the current quarter with less momentum following a 3.8 percent annualized increase in the fourth quarter.
While job growth, modest income gains and recent tax cuts should help buoy demand, a pickup in credit-card debt may have persuaded households to temper their spending at merchants last month.
The figures aren't adjusted for changes in prices and can be volatile from month to month.
Other Details
- Excluding automobiles and gasoline, sales fell 0.2 percent, after little change the previous month
- Receipts at gasoline stations increased 1.6 percent after a 0.3 percent gain, reflecting higher fuel costs
- Sales dropped 0.4 percent at furniture outlets, 2.4 percent at building-supply merchants and 1.2 percent at personal-care stores
- Non-store retail sales were little changed in January after a downwardly revised 0.5 percent increase
- Apparel sales climbed 1.2 percent, reflecting higher prices
--With assistance from Chris Middleton
To contact the reporter on this story: Shobhana Chandra in Washington at schandra1@bloomberg.net.
To contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Vince Golle
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