Retail Sales in the United States Fall as Inflation Continues to Rise
Last January, retail sales in the United States fell 0.8% compared to the previous month, according to a report from the Department of Commerce. The adjusted figure, however, saw a slight increase of 0.4%. This decline was greater than the 0.10% drop expected by economists and is also the lowest monthly figure since March 2023.
Sales fell 0.5% if we exclude those linked to car dealers and gas stations, indicating a general reduction in consumer spending. Experts attribute this to the weight of credit card debt and the high prices that have been prevalent in the last three years.
Buyers slowed down their spending in January, suffocated by high prices that continued to rise. This fact contradicts what was reported by the Federal Reserve regarding the considerable reduction in inflation.
The report also revealed that sales of clothing and accessories decreased by 0.2% while those of construction materials suppliers and suppliers fell 4.1%, indicating a weak and unstable market at the beginning of the year.
In contrast, general merchandise stores saw stable sales, while online sales fell 0.8% and restaurant sales rose 0.7%.
Economists found that core consumer inflation rose to 3.9% in 12 months, making it a significant concern for the Biden administration. Lowering inflationary levels is one of the main challenges for 2024, and it remains a key part of the current agenda for the government.