Mar 17, 2025 - Business

Retail sales rebound slightly in February

Courtenay Brown

Shoppers in a store walking down the aisle — Photo: David Paul Morris/Bloomberg via Getty Images

Spending among American consumers rose 0.2% in February, rebounding from a sharp pullback the previous month, the Commerce Department said on Monday.

Why it matters: Overall spending recovered less than expected from a slow start to 2025. But the details of the report are more encouraging, offering some relief about the health of the economy.

Details: Economists expected retail sales would rise 0.5% in February.

The headline figure was dragged down by a pullback in spending at gasoline stations, which fell 1% in February, likely as a result of lower gas prices. The data is not adjusted for inflation.
There was a slump in retail sales for autos and car parts, down 0.4%.

Yes, but: Excluding gasoline and auto sales, overall retail spending rose a healthy 0.5%.

Among the categories with the largest spending increases: e-commerce sites (+2.4%), health and personal care stores (+1.7%) and grocery stores (+0.4%).

The other side: Aside from gas stations, consumers spent less at department stores (-1.7%), dining establishments (-1.5%), and clothing stores (-0.6%).

What to watch: Tariff policy and federal workforce cuts have weighed on consumer sentiment.

That, alongside other surveys showing cooling economic activity, has stoked concerns of an economic slowdown.
The retail sales report shows that as of February, plummeting consumer sentiment did not translate into a drastic spending pullback.

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Retail sales rebound slightly in February

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