Overall retail sales in January 2025 decreased by 0.9% on a seasonally adjusted basis from the previous month but saw a 4.2% rise on an unadjusted basis compared to 2024, as reported by the US Census Bureau.
This is a slight drop from December’s figures, which showed month-on-month increases of 0.7% and year-on-year growth of 4.4%.
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Core retail sales, which exclude car dealers, petrol stations and restaurants, recorded a month-on-month decline of 0.9% after seasonal adjustments but a 4% increase on an unadjusted year-on-year basis.
Over a three-month moving average, core sales as defined by National Retail Federation (NRF) were up by 4.1% compared to the previous year.
Retail trade sales declined 1.2% from December 2024, but is still up 4.0% from the previous year.
Sales in motor vehicle and parts dealers saw an increase of 6.4% compared to 2024, while food service and drinking establishments rose 5.4% from January 2024.
National Retail Federation chief economist Jack Kleinhenz stated: “It’s reasonable to expect some slowdown from the vigorous 2024 holiday season, so January’s numbers are not a surprise and don’t contradict the consumer spending trends we experienced.
“The slower spending reflects weaker payroll growth in January, and higher prices remain a challenge for most households. Cold weather in many parts of the country and wildfires in California were likely headwinds that disrupted demand and consumer patterns. Nonetheless, these results point to a stable economy and provide a solid start to 2025.”
These numbers come after a period in which core retail sales increased by 4% year-on-year during the 2024 holiday season and by 3.6% for the entire year.
In early February 2025, data from the CNBC/NRF Retail Monitor indicated a 1.27% decline in core retail sales after seasonal adjustments. However, when adjusted for seasonality, sales showed a 5.72% increase compared to January of the previous year.
