NEW YORK — Shoppers increased their spending in February after a decline the month before, reflecting the mixed feelings Americans have in an economy where prices are rising but jobs are plentiful.
Retail sales rose 0.6% last month after a revised 1.1% decline in January, partly due to bad weather, Thursday’s Commerce Department report showed. February’s number was increased in part by higher gasoline prices and higher car sales.
Excluding turnover from petrol stations and car dealers, turnover increased by 0.3%.
Sales at general merchandise stores rose 0.4%, while electronics and appliance stores saw a solid increase of 1.5%. Restaurants posted an increase of 0.4%. Furniture stores and home furnishing stores saw a decline of 1.1%. Online sales fell by 0.1%.
Household spending is fueled by a strong labor market and rising wages. But spending has become choppy due to rising credit costs and higher prices.
U.S. employers continued hiring in February, adding a surprising 275,000 jobs, underscoring the resilience of the U.S. economy despite efforts by the U.S. Federal Reserve to reduce inflation by slowing spending.
While costs for many goods appear to have stabilized, consumer prices in the United States have risen over the past month, demonstrating how brisk economic activity and strong consumer spending have made fighting inflation a complicated task for the Fed, and a potential headache for President Joe Biden’s president. to run for re-election.
The latest quarterly financial reports from major retailers like Walmart, Target and Macy’s show that their customers are looking for deals and, in many cases, sticking to the necessities when they shop.
“They continue to shop, but they are more restricted,” Target CEO Brian Cornell told The Associated Press last week. “People use credit cards to get through the month. Rental costs across the country have risen and gas is volatile.”
Chris Riccobono, founder of the New York clothing chain Untuckit. said customers are waiting for sales. That’s a break from the pandemic, and he said this year he wants to cut back on the company’s reliance on discounts to boost sales.
“I want to train our customers to return to the days before the corona crisis,” he said. That was when the company had sales three times a year.
The government’s monthly retail sales report provides only a partial look at consumer spending; it does not include many services including travel and hotel lodges. It is also not adjusted for inflation.
