US Retail Sales Drop 0.9% in January As Weather and Tariffs Weight on SPEENDING

Tariff Uncertainty Weights on Consumer Behavior Trade Policy Uncertainty Also Played a Role in Distorting Retail Patterns. A 25% Tariff on Mexican and Canadian Goods, Originally Expectioned Earlier, Was Delayed Until March, While A 10% Tariff on Chinese Goods Took Effect in January. TheSe Factors Likely InfluenCed Consumer Spending Patterns, As Households Made Advance Purchases in Late 2023 to Avoid Potential Price Increases.

Core Retail Sales Deckline, Raising Concerns for Consumer Spending Excluding Autos, Gasoline, Building Materials, and Food Services – Key Components of Core Retail Sales – Specialing Fell 0.8% in January, Erasting December’s 0.8% GAIN. This Measure Closely Tracks of the Consumer Spending Portion of GDP, Making the Weakness A Potential Concern for Economic Growth in the Firmst Quarter. Economists Had Forecast A 0.3% Rise in Core Sales, Further UndersCoring The Unexpectioned Nature of the Slowdown.

Outlook: Cautiously Bearish for Retail Spending Despite this setback, Consumer Spending Remains Supported by A Strong Labor Market and Elegated Household Wealth, Particularly from High Home Values. However, with Tariffs Still in Play and Weather-Related Disruptions Lingering, The Short-Term Outlook for Retail Sales Appears Bearish. Traders Should Monitor February’s Retail Data Closely to Assess Wheether This Downturn Is A Tempury Weather-Driven Slump or A Signal of Slowing Consumer Demand.