ARLINGTON, Va.—Total retail sales decreased 0.3% in January – the biggest decline in nearly a year. NAFCU Research Assistant Yun Cohen said retail sales were down due to slowing vehicle sales.
"Despite the weak readings, the outlook for retail sales remains positive in light of a strong labor market and tax stimulus," she said in a NAFCU Macro Data Flash report.
Core retail sales (excluding light vehicles and gasoline) decreased 0.2% in January; auto and gas sales declined 0.5% during the month, Cohen said.
Year-over-year growth in retail sales was 3.6% in January, down from 5.2% in December. Core retail sales increased 3.7% from a year ago, while auto and gas sales rose 3.6% from last year, she said.
Results among the major retail segments were mixed in January. Gasoline stations and miscellaneous store retailers both reported a sales increase of 1.6%, followed by apparel stores (+1.2%) and electronics stores (+0.5%). Sales at building supply stores decreased 2.4%, followed by auto and parts dealers (-1.3%) and pharmacies (-1.2%), Cohen explained.
According to data published by the Census Bureau, December's sales were revised down from 0.4% growth to unchanged, and November's growth was revised down from 0.9% to 0.8%.