United States retail sales edged up 0.2% month-over-month in February, missing forecasts of a 0.6% rise, according to an advanced reading from the Commerce Department.
The increase, while an improvement from January’s downwardly revised 1.2% decline, reflects a more restrained consumer spending pace amid inflation concerns.
Excluding autos, sales grew 0.3%, in line with expectations. Adjusted for seasonal factors but not inflation, the report aligns with the Labor Department’s data showing a 0.2% monthly rise in prices, suggesting real spending remained steady.
Online shopping bolstered the figures, with nonstore retailers posting a 2.4% gain. Health and personal care sales rose 1.7%, and food and beverage stores saw a 0.4% uptick.
However, bars and restaurants experienced a 1.5% decline, and gas station sales fell 1% amid lower fuel prices.
On an annual basis, retail sales were up 3.1%, outpacing the 2.8% year-over-year inflation rate measured by the Consumer Price Index.
The data comes amid mounting concerns over economic growth, as trade tensions and inflationary pressures persist. Some indicators, such as the Atlanta Federal Reserve’s GDPNow model, suggest first-quarter growth may turn negative.
In separate economic data, the New York Federal Reserve’s Empire State Manufacturing Survey showed a significant downturn in regional factory activity.
The index plunged to -20 in March from 5.7 in February, far below expectations of -0.75.
New orders tumbled, and price pressures remained elevated, adding to worries about the broader economic outlook.
