US Retail Sales Miss Expectations After January Drop.

Lean Wei Ren.

Published on 17th March 2025.

US retail sales rose just 0.2% in February —less than expected—while January’s decline was revised to -1.2%, adding to concerns about a slowdown in consumer spending.

Retail Sales Breakdown:

Total sales: 0.2% (below forecasts)

Excluding autos: 0.3%

The report mainly tracks spending on goods—which is especially important as tariffs on imports could push prices higher. This could squeeze low-income consumers and discourage spending among wealthier Americans as stock market volatility affects their investments.

Mixed Signals Across Retail Categories

Out of the 13 categories, 7 saw declines, including:

❌ Motor vehicles (expected to rebound but didn’t)

❌ Gasoline, electronics, and apparel sales fell

❌ Restaurants & bars saw their biggest drop in a year

Market Reaction

Stock futures trimmed losses, and Treasury yields ticked higher after the report.

Key Takeaways for Beginner Investors

1. Retail sales impact the stock market—a weaker report can signal slower economic growth.

2. Tariffs & inflation may raise costs for consumers, affecting spending habits.

3. Market volatility can make wealthier investors cautious, leading to lower big-ticket purchases.

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