Retail Sales Fall 0.8% from December to January After Strong Holiday Season

NEW YORK (AP) — Americans took a break from spending in January after the traditional holiday season splurge.

Retail sales fell 0.8% in January from the strong pace in December when they rose a revised 0.4%, according to the Commerce Department’s report on Thursday. Excluding sales at auto dealerships and gas stations, sales were down 0.5%.

Economists had expected Americans to pull back on spending late last year under the weight of credit card debt and diminished savings. Yet despite those challenges, along with higher borrowing costs and elevated prices, household spending continues to be fueled by a strong jobs market and rising wages.

- Sponsors -

There was another surprising burst of hiring to start off 2024 as employers added 353,000 jobs in January, more evidence that the highest interest rates in two decades, intended to slow the economy, have yet to take hold.

But shoppers appeared to be slowing down their spending in January.

Business at clothing and accessory stores was down 0.2%. Sales at building materials and supplier suppliers fell 4.1%, reflecting a still weak housing market. Business at general merchandise stores was unchanged. Online sales fell 0.8%. Business at restaurants were up 0.7%

- Partner Content -

Entergy’s Energy Smart Program Brings Cost Conscious Innovation to New Orleans

Offering comprehensive energy efficiency at no cost to the consumer, Entergy’s Energy Smart program incentivizes Entergy New Orleans customers to perform energy-saving upgrades in...

Consumer inflation in the United States cooled last month yet remained high and the U.S. reported this week that consumer price index rose 0.3% from December to January. Compared with a year ago, prices are up 3.1%.

That’s far below the 9.1% inflation peak in mid-2022, but solidly above the Federal Reserve’s 2% target level at a time when public frustration with inflation has become a pivotal issue in President Joe Biden’s bid for re-election.

Major retailers including Walmart and Macy’s are slated to report financial results for the fiscal fourth quarter, which includes the critical holiday period, in the next few weeks.

- Sponsors -

By Associated Press writer Anne D’Innocenzio

AP Economics writer Chris Rugaber in Washington contributed to this report.

Digital Sponsors / Become a Sponsor

Follow the issues, companies and people that matter most to business in New Orleans.

Email Newsletter

Sign up for our email newsletter