In February 2025, retail sales in the United States experienced a modest increase, reflecting cautious consumer behaviour amid ongoing economic uncertainties.
According to the U.S. Census Bureau, retail sales rose by 0.2% in February, following a revised decline of 1.2% in January. Year-on-year, sales were up 3.1%.
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Online retailers and health and personal care stores reported notable gains in February. In contrast, sectors such as automobiles, furniture, clothing, and electronics experienced declines in sales.
Additionally, spending at restaurants and bars decreased, indicating a more cautious approach to discretionary spending.
Economic factors influencing consumer behaviour
Several factors have contributed to this cautious consumer sentiment. Recent tariff policies and federal workforce reductions have created economic uncertainties, leading to more conservative spending patterns.
Furthermore, a decline in consumer confidence has been observed, influenced by stock market volatility and concerns over potential inflation.
Outlook for future consumer spending
Despite the subdued spending in February, some analysts remain optimistic about the resilience of consumer fundamentals, citing low unemployment and steady income growth as supportive factors.
However, the potential impact of ongoing economic uncertainties, including tariff implementations and policy changes, may continue to influence consumer behaviour in the coming months.
