MW Retail sales in the U.S. barely rise. Is the economy slowing?
By Jeffry Bartash
Weak consumer spending points to weak GDP
Story developing. Stay tuned for updates here.
The numbers: Retail sales barely rose in February in another sign the economy might be weakening as businesses and consumers digest rapid-fire changes in Washington by the Trump White House.
Sales at U.S. retailers rose a scant 0.2% in last month, the government said Monday, Economists polled by The Wall Street Journal had forecast a 0.6% increase.
Most of the increase in spending last month was concentrated in online stores and pharmacies. Other retailers reported soft or negative sales.
Retail sales are being watched even more closely than usual to see if President Trump's tariffs and deep cuts in the federal workforce are hurting the economy. Consumer confidence has fallen to a 2 1/2-year low.
Sales sank a revised 1.2% in January, largely because of bad weather and a post-holiday lull. Cold weather may have also been another factor in last month's soft sales.
Retail sales represent about one-third of all consumer spending and offer clues on the health of the economy. In 2024, retail sales rose a solid 4.4%.
Big picture: Retailers and other companies were optimistic about the new year in anticipation of lower taxes and less regulation by the Trump administration. Yet a series of trade wars launched by president have dented the confidence of businesses and consumers and sent the stock market plunging.
Economists say the future of the economy is likely to remain cloudy until the trade wars are resolved. Higher tariffs could raise inflation and force the Federal Reserve to keep interest rates high. High borrowing costs tend to slow the economy.
Market reaction: The Dow Jones Industrial Average DJIA and S&P 500 SPX were set to open lower in Monday trading.
-Jeffry Bartash
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March 17, 2025 08:40 ET (12:40 GMT)
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