• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Stock

Retail sales slumped 0.9% in January, down much more than expected

by February 15, 2025
written by February 15, 2025

Consumers sharply curtailed their spending in January, indicating a potential weakening in economic growth ahead, according to a Commerce Department report Friday.

Retail sales slipped 0.9% for the month from an upwardly revised 0.7% gain in December, even worse than the Dow Jones estimate for a 0.2% decline. The sales totals are adjusted for seasonality but not inflation for a month, in which prices rose 0.5%.

Excluding autos, prices fell 0.4%, also well off the consensus forecast for a 0.3% increase. A “control” measure that strips out several nonessential categories and figures directly into calculations for gross domestic product fell 0.8% after an upwardly revised increase of 0.8%.

With consumer spending making up about two-thirds of all economic activity in the U.S., the sales numbers indicate a potential weakening in growth for the first quarter.

Receipts at sporting goods, music and book stores tumbled 4.6% on the month, while online outlets reported a 1.9% decline and motor vehicles and parts spending dropped 2.8%. Gas stations along with food and drinking establishments both reported 0.9% increases.

Stock market futures held in slightly negative territory following the release, while Treasury yields lost ground. Traders raised bets that the Federal Reserve could cut interest rates again as soon as June.

“The drop was dramatic, but several mitigating factors show there’s no cause for alarm. Some of it can be chalked up to bad weather, and some to auto sales tanking in January after an unusual surge in December due to fat dealer incentives,” said Robert Frick, corporate economist with Navy Federal Credit Union. “Especially considering December was revised up strongly, the rolling average of consumer spending remains solid,” Frick added.

Inflation remains ahead of the Fed’s 2% goal. The consumer price index posted a 0.5% gain in January and showed a 3% annual inflation rate. However, the producer price index, a proxy for wholesale prices, showed some softening in key pipeline inputs.

In other economic news Friday, the Bureau of Labor Statistics reported that import prices accelerated 0.3% in January, in line with expectations for the largest one-month move since April 2024. On a year-over-year basis, import prices increased 1.9%.

Fuel prices increased 3.2% on the month, also the biggest gain since April 2024. Food, feeds and beverage costs rose 0.2% following a 3% surge in December.

Export prices also increased, rising 1.3%.

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
Federal judge delays Labor Department’s request to block DOGE access
next post
Federal judge delays unions’ request to block DOGE access to agency information

related articles

YouTube to pay $24 million to settle Trump...

October 1, 2025

Charlie Javice sentenced to 7 years in prison...

October 1, 2025

Video game maker Electronic Arts to be acquired...

October 1, 2025

Nearly 200,000 BMWs recalled over potential fire risk

September 30, 2025

Trump says U.S. will impose new tariffs on...

September 29, 2025

Former Fed chairs warn that removing Lisa Cook...

September 27, 2025

Amazon to pay $2.5 billion to settle FTC...

September 27, 2025

The charm of watching movies in theaters is...

September 25, 2025

Ben & Jerry’s co-founder resigns, claiming parent company...

September 18, 2025

LimeWire acquires Fyre Festival, asking ‘What Could Possibly...

September 17, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • US strikes kill hundreds of Houthi fighters, hit over 800 Red Sea targets: Central Command

    April 28, 2025
  • NASA backs Trump budget blueprint with $6B cut to agency

    May 6, 2025
  • CATL IPO: will the EV battery giant’s Hong Kong debut revive the city’s capital markets?

    February 12, 2025
  • MNDY Stock Soars On Strong Q2 Earnings

    August 23, 2024
  • Can reselling jets made for China to Asian airlines manage headwinds for Boeing? Here’s what experts say

    April 22, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (6,247)
  • Investing (634)
  • Stock (935)

Latest Posts

  • Melania Trump to focus on love as a ‘universal language’ at International Women of Courage Awards

    April 1, 2025
  • British invasion: Labour Party to descend on US to help Harris

    October 18, 2024
  • House Freedom Caucus to draw battle lines on reconciliation fight after presenting plan to Trump

    January 16, 2025

Recent Posts

  • Anna Paulina Luna forces House leadership’s hand on proxy voting as GOP war escalates

    April 1, 2025
  • ‘Most transparent’ FBI ever: Patel updates Senate on Kirk assassination probe

    September 16, 2025
  • GOP-led Senate confirming president’s nominees at faster pace than Biden admin, first Trump term

    February 5, 2025

Editor’s Pick

  • Comer to create DOGE subcommittee chaired by Marjorie Taylor Greene to work with Elon Musk, Vivek Ramaswamy

    November 21, 2024
  • Soaring egg prices are threatening a classic holiday tradition: Easter dye kits

    March 1, 2025
  • Lawmakers ask Mark Zuckerberg to show how Facebook, Instagram are addressing illicit drug ads

    August 16, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock