NEW YORK >> America’s consumers trimmed their spending in February after a buying burst in January, underscoring the volatility of the economic environment.
The government said Wednesday that retail sales slipped 0.4% after jumping a revised 3.2% in January, helped by an increase in auto sales. Retail sales were down in November and December, the critical holiday period.
The February retail sales figure was weighed down by a 1.8% drop in auto sales as well as declines at restaurants and stores selling furniture and clothing. Excluding autos, sales slipped 0.1% from January, according to the Commerce Department.
Sales at furniture stores fell 2.5%, while business at restaurants declined 2.2% in February from January. Sales at department stores slid 4%. But shoppers spent more online and at electronics stores, health and beauty stores and food retailers, according to the report.
Shoppers remain relatively resilient, getting a boost from a strong job market. America’s employers added a solid 311,000 jobs in February, fewer than January’s huge gain. But they are grappling with still high prices on almost everything.
The government reported on Tuesday that U.S. consumer price increases eased slightly from January to February but still pointed to an elevated inflation rate that’s presenting a challenge for the Federal Reserve at a delicate moment for the financial system. Prices increased 0.4% last month, just below January’s 0.5% rise.
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