NEW YORK (AP) — Shoppers spent a little more in February after a rebound the previous month, but this reflects the complexities Americans have in an economy where prices are rising but jobs are plentiful. It reflects the feelings of
Retail sales fell a revised 1.1% in January, partly due to bad weather, but rose 0.6% last month, according to a Thursday report from the Commerce Department. However, sales in February were weaker than expected, and sales forecasts for January were revised downward.
February’s numbers were also boosted in part by higher gas prices and higher car sales. Sales, excluding sales from gas stations and car dealers, rose 0.3%.
As of Thursday, the national average gas price is $3.41 per gallon per AAA. This is higher than the average price of $3.39 a week ago and the average price of $3.26 a month ago.
“February retail sales were slightly weighed down by inflation and lower savings, with consumer health remaining relatively strong after several years of strong growth, leading to 2024 discretionary sales growth.” “This is further evidence that spending on goods is likely to slow,” said David Silverman. Senior Director of Fitch Ratings.
Department stores decreased by 0.2%, and clothing and accessory stores decreased by 0.5%. Furniture and household goods stores decreased by 1.1%. Online sales decreased by 0.1%. However, sales at electronics and home appliance stores were steady with an increase of 1.5%. Restaurants increased by 0.4%.
A strong job market and rising wages are boosting household spending. But spending has become unstable in the face of rising credit costs and rising prices.
U.S. employers continued to hire in February, adding an astonishing 275,000 jobs, despite the Federal Reserve’s efforts to rein in spending and rein in inflation. , highlighting the resilience of the U.S. economy.
Although the cost of many goods appears to have plateaued, U.S. consumer prices rose last month, highlighting how vibrant economic activity and strong consumer spending make combating inflation a complex challenge for the Fed. It points to a potential headache for President Joe Biden. Bid for re-election.
The latest quarterly financial reports from major retailers like Walmart, Target, and Macy’s show that customers are looking for great deals and often stick to essentials when shopping.
“They’re continuing to shop, but they’re more constrained,” Target CEO Brian Cornell said in an interview with The Associated Press last week. “People are using credit cards to get through the month. Rent is rising across the country and gas is unstable.”
Chris Ricobono, founder of New York clothing chain Untakit. The customer said he was waiting for the sale. It’s a departure from the pandemic, and he said he wants to rely less on discounts to boost sales this year.
“We want to start training our customers to get back to pre-COVID days,” he said. At that time, there were sales three times a year.
The government’s monthly retail sales report provides only a portion of consumer spending. Many services are not included, such as travel and hotel lodges. It is also not adjusted for inflation.
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