US retail sales stumbled badly into 2025

The weak January report suggests that the health of consumer spending, which carried the US economy to robust growth last year, will bear close watching in the months ahead, writes KPMG Senior Advisor Chris Varvares.

Retail and food services sales fell 0.9 percent in January, significantly weaker than expected, after four consecutive monthly gains. A drop in light vehicle sales in January accounted for roughly two-thirds of the decline. However, even excluding vehicle sales, retail sales and food services sales declines were broadly based, with retail sales excluding autos declining 0.4 percent. Sales in January may have been restrained by an outbreak of unseasonably cold and snowy weather, primarily in...

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Published Date: 18 February 2025