US Retail Sales Dropped , More Than Expected in January.
On Feb.
15, the Commerce Department reported that retail sales fell 0.8% for the month, halting a two-month increase streak.
The percentage was significantly lower than economists' forecasts of a 0.1% decline, CNN reports.
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Cold weather likely contributed to declines at gas stations and home improvement stores, which fell 1.7% and 4.1%, respectively.
Online sales dipped 0.8%.
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However, bar and restaurant sales increased 0.7%.
High interest rates and inflation continue to squeeze many Americans, CNN reports.
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But the job market remains steady.
Even though January's sales report was worse than expected, there's only been two declines over the last 10 months.
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This weakness typically reverses quickly as weather returns to normal and people catch up on spending plans delayed by the cold and snow, Bill Adams, chief economist at Comerica Bank, via CNN.
The Fed is likely to look through one month’s weak retail sales report, especially since there is an obvious explanation from a clearly temporary issue, Bill Adams, chief economist at Comerica Bank, via CNN
