Americans took a break from spending in January after the traditional holiday season splurge, according to the Associated Press.
Retail sales fell 0.8% in January from a strong pace in December, when they rose a revised 0.4%, according to the Commerce Department’s report today. Excluding sales at auto dealerships and gas stations, sales were down 0.5%.
Economists had expected Americans to pull back on spending late last year under the weight of credit card debt and diminished savings, yet despite those challenges, along with higher borrowing costs and elevated prices, household spending continues to be fueled by a strong jobs market and rising wages.
That said, shoppers appeared to be slowing down their spending in January.
Business at clothing and accessory stores was down 0.2%. Sales at building materials and supplier suppliers fell 4.1%, reflecting a still weak housing market. Business at general merchandise stores was unchanged. Online sales fell 0.8%. Business at restaurants was up 0.7%.
