US retail sales rose by less than forecast in February and the prior month was revised lower, adding to concerns of a pullback in consumer spending.
The value of retail purchases, not adjusted for inflation, increased 0.2% after a revised 1.2% decline in January, Commerce Department data showed Monday. Excluding autos, sales advanced 0.3%.
The retail report largely encompasses spending on goods, which is especially relevant now as President Donald Trump imposes tariffs on a swath of imports from major trading partners — likely driving up prices. That’ll not only hit low-income consumers who are already strapped for cash, but also wealthier Americans as a recent stock-market selloff discourages big investments.
Seven of the report’s 13 categories posted decreases, notably motor vehicles — which were expected to rebound from a weak January. Gasoline sales, as well as those of electronics and apparel were also lower. Spending at restaurants and bars, the only service-sector category in the retail report, declined by the most in a year.
Stock futures pared losses and Treasury yields rose after the report.
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