Mar 15, 2023 - Economy

Retail sales drop in February after consumer spending surge

Courtenay Brown

Photo: Gabby Jones/Bloomberg via Getty Images

Consumers pulled back on spending at retail stores last month, after a burst of spending in January that was even stronger than previously estimated.

Driving the news: Shoppers spent less at furniture stores, restaurants and elsewhere, as retail sales fell 0.4% in February, according to data released by the Commerce Department on Wednesday. The figures are not adjusted for inflation.

That followed a strong 3.2% jump in retail sales for January, which was revised slightly higher.

Why it matters: The year began with ultra-strong consumer spending in January, which suggested, along with other economic indicators that month, that demand was heating up.

But slowed consumer spending shows that did not continue, at least not across the board.
Separate data that the Labor Department released Wednesday showed an unexpected decline in wholesale prices in February, which may suggest easing price pressures for consumers in the months ahead.

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Retail sales drop in February after consumer spending surge

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