WASHINGTON (AP) – US shoppers stepped up their spending slightly in February The sudden pullback from the previous monthshowing that Americans shop more carefully Concerns about economic direction mount.
The Commerce Department said on Monday that retail sales rose just 0.2% in February and rose with a slight rebound after a sharp drop of 1.2% in January. Sales rose in grocery stores, home and garden stores and online retailers. Sales at car dealers, restaurants and electronic stores have declined.
The slight increase suggests that Americans may be more wary of spending as stock markets plummeted, leading to President Donald Trump’s tariff threat and government spending cuts. Wide range of uncertainty Between consumers and businesses.
Some economists have reassured that numbers have not deteriorated. Still, many expect consumer spending to increase by just 1% to 1.5% annually in the first three months of the year. That’s well below 4.2% in last quarter.
“Consumer spending is on track to slow this quarter sharply, but not as much as we’ve been afraid before,” said Stephen Brown, an economist at consulting firm Capital Economics.
Friday, scale Consumer sentiment The third month fell sharply, falling more than 20% since December. Respondents to the University of Michigan survey cited policy uncertainty as a key reason for the pessimistic outlook. Respondents were sharply divided by the party – sentiment about the current economy fell among far fewer Republicans than Democrats – Republican confidence in the future in the economy fell by 10%.
Consumers at all income levels feel more tense.
Hunter Simmons of Austin, Texas, is a lawyer and journalist who said that uncertainty about the economy has become more cautious about spending due to stock market turmoil and tariffs. He once bought fresh eggs from more expensive farms, but now he says he’s picking the cheapest eggs he can find. He also buys fresh vegetables and fruits and relies on the frozen version. And recently, Simmons has begun paying for gas in cash and has been taking part in the fuel rewards program.
“I’m not a big spender in general, but I’m cutting back in a small way,” he said.
Over the past few weeks, many revenue reports from major retailers have been Walmart, Macy’s And Dollar General cites slower spending.
Walmart, the nation’s largest retailer and pioneer in the retail sector, has announced a weak outlook last month Quoting uncertainty regarding customs duties.
Sales in February also fell at gas stations, clothing stores and sports goods stores last month. The numbers aren’t adjusted to price, and gas costs also fell in February, accounting for most of the decline. Excluding gas and automobiles, retail sales increased by 0.5%. This is a healthy figure, but remains modest even after the 0.8% entry in January.
Also on Monday, the National Housing Builder Association said its index measurement builder sentiment fell three points to 39, dropping to its lowest level in seven months as economic uncertainty blew the builder’s outlook and potential buyers visited the home.
“Economic uncertainty, tariff threats and rising construction costs have led to a decline in builder sentiment in March,” the group said. Home builders add a tariff of $9,200 New home cost.
Macy’s says its customers are worried about Bluemercury and Bloomingdale’s customers, even at its luxury chain, and this month’s financial outlook reflects that.
“I think the wealthy customers who are shopping Macy’s are confused and worried about what’s going on,” Macy’s CEO Tony Spring said at the time.
Employment has been mostly postponed And there are no indications that businesses are giving birth to workers. As long as Americans have jobs, spending could remain resilient. But that is not guaranteed.
Dollar General CEO Todd Vasos said Thursday that the overall economic situation for its customers is not ideal and the company will close around 100 stores.
“Our customers continue to report that their financial situation has deteriorated last year due to negative impacts from ongoing inflation,” Vasos said in a revenue call. “Many of our customers report that they only have enough money for basic essentials, and some point out that even essentials had to sacrifice.”
The spending pattern at Costco has changed to accommodate the sour landscape of the economy, such as the shift to ground beef and poultry, as mentioned by the company’s chief financial officer Gary Millership.
Jay Schottenstein, CEO of American Eagle trinkets, said Angst is particularly high among younger customers.
“It’s not just tariffs, it’s not just inflation,” Schottenstein said. “We see the government cut off people. They don’t know how it affects them. And when people don’t know what they don’t know – they become very conservative.”
Retail sales reports not only cover primarily product purchases and restaurant sales, but there are signs that Americans are cutting spending on services.
An airline executive at JP Morgan’s Aviation Industry Conference last week said the bookings had been made.
“There was something going on with economic emotions. Something is going on with the confidence of the consumer,” Delta CEO Ed Bastian said at an industry conference.
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d’Hynenzio was reported from New York.
