U.S. shoppers stepped up their spending a bit in February after a sharp pullback the previous month, according to the Associated Press, signaling that Americans are shopping more cautiously as concerns about the direction of the economy mount.
Retail sales rose just 0.2% in February, a small rebound after a sharp drop of 1.2% in January, the Commerce Department said Monday. Sales rose at grocery stores, home and garden stores, and online retailers. Sales fell at auto dealers, restaurants, and electronics stores.
The small increase suggests Americans may be growing more wary about spending as the stock market has plunged and President Donald Trump’s tariff threats and government spending cuts have led to widespread uncertainty among consumers and businesses.
Sales also fell last month at gas stations, clothing stores, and sporting goods stores. The figures aren’t adjusted for prices, and the cost of gas also declined in February, which likely accounts for most of the drop. Excluding gas and autos, retail sales rose 0.5%, a healthier figure but still modest after a plunge of 0.8% in January.
Hiring has mostly held up, and there are no signs that companies are laying off workers. As long as Americans have jobs, spending will likely show signs of resilience.
Still, consumers from all income levels are feeling more strained, according to a slew of earnings reports over the past few weeks from major retailers including Walmart, Macy’s, and Dollar General.
