US retail sales fell in January as demand slowed after the holiday season, with cold weather and wildfires likely contributing to the decline.
Revenue slid 0.9% — adjusted for seasonal variation — from the previous month to $723.9 billion, according to data the US Census Bureau released Friday. That drop comes after sales improved 0.7% to $730.3 billion in December, which receives a boost from holiday shopping.
“Consumers pulled back in January, taking a breather after a stronger-than-expected holiday season,” said National Retail Federation (NRF) president and CEO Matthew Shay. “Despite the monthly decline, the year-over-year increases reflect overall consumer strength as a strong job market and wage gains above the rate of inflation continue to support spending.”
Sales were up 4.2% from the previous year, versus a 4.4% rise in December.
Seven out of the nine categories the NRF tracks saw year-on-year gains in January. The clothing and accessories segment — which includes jewelry — fell 3% compared to December but rose 8% versus the same period a year ago. Online sales were up 0.4% month on month and 30% year on year. While the electronic and appliances and sporting goods, hobby, music and bookstore divisions fell compared to the previous month, they advanced year on year.
“It’s reasonable to expect some slowdown from the vigorous 2024 holiday season, so January’s numbers are not a surprise and don’t contradict the consumer spending trends we experienced,” said NRF chief economist Jack Kleinhenz. “Cold weather in many parts of the country and wildfires in California were likely headwinds that disrupted demand and consumer patterns. Nonetheless, these results point to a stable economy and provide a solid start to 2025.”
Image: People shopping at a mall. (Shutterstock)
