January saw a sharp pullback in consumer spending, suggesting a potential slowdown in economic growth, according to a Commerce Department report released Friday. Retail sales dropped 0.9% for the month, following an upwardly revised 0.7% gain in December.. Much worse than the expected 0.2% dip. These figures are adjusted for seasonality but not inflation, which rose 0.5% during the month.
Excluding auto sales, retail spending fell 0.4%, missing the forecasted 0.3% increase. A critical “control” measure, used to calculate GDP by stripping out nonessential categories, dropped 0.8%, erasing the previous month’s 0.8% gain.
Since consumer spending accounts for about two-thirds of U.S. economic activity, this decline raises concerns about weaker growth in the first quarter.
**Key Figures:**
* **Sporting goods, music, and bookstores**: -4.6%
* **Online retail**: -1.9%
* **Motor vehicles and parts**: -2.8%
* **Gas stations & food & drink**: +0.9%
The data suggests consumer momentum may be fading, leaving myself and probably many others wondering how the economy will fare moving forward.
Source: [https://www.cnbc.com/2025/02/14/retail-sales-slumped-0point9percent-in-january-down-much-more-than-expected-.html](https://www.cnbc.com/2025/02/14/retail-sales-slumped-0point9percent-in-january-down-much-more-than-expected-.html)