American consumers pulled back their spending to start 2026, extending the malaise in retail sales that began late last year.<\/p>\n
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, according to the Commerce Department’s report issued on Friday. The report was delayed because of the 43-day government shutdown.<\/p>\n
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.<\/p>\n
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%.<\/p>\n
The snapshot offers only a partial look at consumer spending and doesn\u2019t include many services, including travel and hotel lodges. But the lone services category \u2013 restaurants \u2013 registered a dip of 0.2%.<\/p>\n
The retail sales report comes as major retailers in recent weeks have reported their fiscal fourth-quarter reports, and so the results have been a mixed bag.<\/p>\n
Walmart Inc.<\/a> delivered another impressive quarter as lower prices and speedy deliveries attracted Americans ranging from cash-strapped to wealthier households. But rival Target<\/a> reported earlier this week another quarterly decline in profits and sales during the critical holiday period as the discounter struggles with its own merchandising missteps and confronts a consumer who is focusing more on essentials.<\/p>\n Meanwhile, Home Depot\u2019s fourth-quarter performance<\/a> was tempered by ongoing caution from American consumers in a weak housing market, but the home improvement retailer\u2019s results topped Wall Street expectations.<\/p>\n Retailers are confronting a shifting tariff landscape, making it hard for retailers to make decisions on hiring and merchandise orders.<\/p>\n