New government data show that retail sales in the U.S. grew by a modest 0.2%, falling short of expectations amid fears about the slowing economy.
Recent warnings from major retailers indicate that Americans are cutting back on their spending. The consumer sector accounts for two-thirds or more of the economy. According to figures published Monday, sales in January were also revised lower.
Ted Rossman is a senior industry analyst at Bankrate. He said that many observers were disappointed with January’s retail figures. February’s numbers also contribute to the narrative of a slowing economy.
“Consumer Confidence has been hit hard in recent weeks due to tariffs and already high prices. We’re also seeing more evidence of consumers pulling back,” said Mr. He.
According to an indicator released by the University of Michigan, last week, consumer confidence fell to its lowest level in two years due to concerns over economic growth. The Trump administration’s decision to impose steep tariffs on U.S. trading partner countries has increased uncertainty for both consumers and businesses. It also scared investors.
American retailers Kohl’s Dick’s and Walmart have warned they expect consumers will spend more conservatively this year. Airlines, such as Delta, American and United, also cut their earnings estimates this month due to similar concerns about an economic slowdown.
