Financial News: U.S. Retail Sales Dip 0.2% In January, Less

U.S. Retail Sales Dip 0.2% In January, Less Than Expected

03/06/2026 - 10:06:00 (RTTNews)

(RTTNews) - A report released by the Commerce Department on Friday showed a modest decrease by retail sales in the U.S. in the month of January.

The Commerce Department said retail sales slipped by 0.2 percent in January after coming in unchanged in December. Economists had expected retail sales to fall by 0.4 percent.

The dip by retail sales partly reflected a decrease in sales by motor vehicles and parts dealers, which slid by 0.9 percent in January after edging down by 0.2 percent in December.

Excluding auto sales, retail sales remained flat in January after coming in unchanged in in December. Ex-auto sales were expected to inch up by 0.1 percent.

"We do not read too much into the decline in retail sales in January, which was clearly affected by the severe winter weather across much of the country," said Michael Pearce, Chief U.S. Economist at Oxford Economics.

He added, "Still, the jump in gasoline prices amid the conflict with Iran is a new headwind on spending, though it comes just as this year's bumper tax refund season is ramping up."

The report showed steep declines in sales by department stores, health and personal care stores, gas stations and clothing and accessories stores.

Meanwhile, sales by miscellaneous store retailers and non-store retailers saw significant growth during the month.

Core retail sales, which exclude automobiles, gasoline, building materials and food services, also rose by 0.3 percent in February after coming in unchanged in January.

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