US Retail Sales Contract in January

US retail sales inched lower by 0.2% from the previous month in January of 2026, pulling back from a stall in the last month of 2025 and loosely in line with market expectations of a 0.3% drop. It was the first decline since October. Retail volumes contracted sharply for motor vehicle and parts dealers (-0.9%), gasoline stations (-2.9%), electronics and appliances stores (-0.6%), and clothing and accessories (-1.7%). Still, sales rose for furniture (0.7%), building materials and garden equipment (0.6%), miscellaneous stores (2%), and non-store retailers (1.9%). These were enough to lift the control group of retail sales by 0.3%, likely having a positive impact in the US GDP. From the previous year, retail sales rose by 3.2% in January.

US retail sales unexpectedly stalled in December 2025, following a 0.6% increase in November and falling short of forecasts for a 0.4% gain. Gains in sales at building material and garden equipment dealers (1.2%), sporting goods, hobby, musical instrument and book stores (0.4%), gasoline stations (0.3%), food and beverage stores (0.2%), and nonstore retailers (0.1%) were offset by declines at miscellaneous store retailers (-0.9%), furniture stores (-0.9%), clothing retailers (-0.7%), electronics and appliance stores (-0.4%), motor vehicle and parts dealers (-0.2%), health (-0.2%), food services and drinking places (-0.1%) and general merchandise stores (-0.1%). Excluding auto dealers and gasoline stations, sales were also flat. Meanwhile, sales excluding food services, auto dealers, building materials stores and gasoline stations, which are used to calculate GDP, edged down 0.1%, the first decline in three months.

US retail sales rose 0.6% mom in November 2025, the largest gain since July, rebounding from a revised 0.1% decline in October and exceeding forecasts of a 0.4% increase. The rise was driven by a rebound in auto sales, following a slowdown caused by the expiration of federal tax incentives on electric vehicles, and by strong holiday shopping. Biggest increases were seen in sales for sporting goods, musical instrument, & book stores (1.9%); miscellaneous store retailers (1.7%); gasoline stations (1.4%); building and garden suppliers (1.3%); motor vehicle dealers (1%); clothing stores (0.9%); food services & drinking places (0.6%); nonstore retailers (0.4%); health & personal care (0.3%); and food & beverage stores (0.1%). On the other hand, sales were flat at general merchandise and electronics stores and fell 0.1% at furniture stores. Meanwhile, sales excluding food services, auto dealers, building materials stores and gasoline stations, which are used to calculate GDP, rose 0.4%.