ARLINGTON, Va.—Total retail sales declined 0.5% in February, following a revised 0.6% rise in January. Retail sales are expected to fall even more steeply as a result of the coronavirus outbreak and resulting quarantines and job reductions.
“Retail sales slowed significantly in February, although an upward revision improved January’s numbers,” said NAFCU Chief Economist and Vice President of Research Curt Long. “Gas stations also saw a large drop in sales along with segments related to the housing industry. The gas station segment is likely to drop further in the coming months due to the sharp drop in oil prices."
Year-over-year growth in retail sales was 4.7% in February, unchanged from January. Control group sales increased 4.6% from a year ago.
Results among the major retail segments were mostly negative in February, with gas stations, electronics stores and building material stores dropping -2.8%, -1.4% and -1.3% respectively.
“March numbers will show a steep drop as the economy grinds to a halt,” Long concluded.