Retail sales fall modestly in January as American consumers pull back on spending
American consumers pulled back their spending to start 2026, extending the slump in retail sales that began late last year.
Retail sales fell 0.2% in January following a flat reading in December. January's figure came in below the forecasts of economists, who were expecting another flat reading.
Sales at health and personal health stores were among the worst performers, falling 3% from December. Gas stations saw declines in receipts of 2.9% and sales at clothing stores fell 1.7% from December.
Among the categories that saw gains were home furnishings and building materials, which includes landscape and gardening supplies. Sales at furniture and home furnishing stores rose 0.7%, while building materials sales rose 0.6%.
Compared with a year earlier, sales in January were up 3.2%.
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