Retail sales dipped in January following a strong holiday season but still showed year-over-year growth, according to the latest U.S. Census Bureau data. National Retail Federation (NRF) Chief Economist Jack Kleinhenz noted that the slowdown was expected after vigorous holiday spending. Contributing factors included weaker payroll growth, persistent high prices, and weather disruptions, such as cold temperatures and California wildfires.
Overall, retail sales declined 0.9% seasonally adjusted month over month but increased 4.2% unadjusted year over year. Core retail sales, which exclude automobiles, gasoline, and restaurants, followed a similar trend, decreasing 0.9% from December but rising 4% year over year.
Despite the January slowdown, the retail sector remains strong, following a 4% year-over-year increase in core retail sales during the 2024 holiday season. The CNBC/NRF Retail Monitor also reported a 5.72% annual gain in core retail sales for January, further supporting signs of a stable economy.
NRF continues to monitor and forecast retail trends, providing insights that help retailers navigate shifting consumer behavior. While economic challenges persist, the retail industry remains resilient as it heads into 2025.
