U.S. retail sales saw a revival in February, as reported by the Commerce Department. However, the climb did not reach some economists' projections. Retail sales rose 0.6 percent in February, following a 1.1 percent decline in January, a figure adjusted from the original estimation.
Expectations actually predicted a retail sales increase of 0.8 percent, contrasting the previously reported decrease of 0.8 percent for the preceding month. Jeffrey Roach, LPL Financial's Chief Economist, suggested that despite increased consumer spending, the persistent downward trends indicate a slowing economy. He suggested keeping an eye on car sales in the upcoming months, as rising vehicle inventories and greater dealer incentives may be indicative of a waning economy.
Motor vehicle and parts dealers were the primary contributors to the rebound, with a 1.6 percent surge in February after a 2.1 percent fall in January. Without the auto sales increase, retail sales saw a rise of only 0.3 percent in February, following a 0.8 percent decrease in January — below the expected 0.5 percent increase.
The report also highlighted significant sales increases in building material and garden equipment suppliers and furniture and electric and appliance stores. Gas stations also saw a notable sales revival. By contrast, furniture and home furnishing stores faced considerable losses during the month. Moreover, clothing and accessories stores, along with health and personal care stores, also experienced decreases in sales.
Core retail sales, excluding automobiles, gasoline, building materials, and food services, remained unchanged in February after a drop of 0.3 percent in January.
