US retail sales plunged last month as consumers pulled back after busy holiday season

[Johnny2X2X]

Source: Associated Press

WASHINGTON (AP) -- U.S. retail sales dropped sharply last month, in part because cold weather kept more Americans indoors and dented sales at car dealers and most other stores.

Retail sales dropped 0.9% in January from the previous month, the Commerce Department said, after two months of healthy gains. January's average temperature was the lowest since 1988, according to Pantheon Macroeconomics, and was particularly disruptive in the South, where such cold weather was unusual. Devastating fires in Los Angeles may have also impacted spending.

Sales dropped sharply last month at auto dealers, falling 2.8%, as well as at furniture stores, home and garden centers, and even in the usually strong online retail sector, where sales dropped 1.9%.

The decline could reflect declines in consumer confidence that were picked up in two recent surveys. Still, hiring and wage growth have been steady, suggesting the economy is still expanding. Last week the government reported that the unemployment rate fell for the second straight month to a low 4%.

Read more: https://finance.yahoo.com/news/us-retail-sales-plunged-last-134018478.html

---

People are scared and not spending. With massive tariffs and entire segments of the economy in upheaval, people are saving money. Now is the time to get as many months of bills as possible into savings. All the other economic indicators are just a result of this one metric, people spending. Regular people having money to spend and spending it is what drives this economy. Not deregulation, not millionaires and billionaires getting huge returns on their investment, and not tariffs, but regular working class people spending.

[tanyev]

1. Also, a lot of people deliberately made pre-tariff purchases of specific items

and are now deliberately spending as little as possible.

[LSparkle]

2. Editorial content in headline ... It's NOT due to holidays ...

You morans! It’s the fucking tariffs!!!!!

[rurallib]

3. And certainly not tax cuts for the wealthy

especially when that money will come from taking it from everybody else.

[JohnSJ]

4. I started boycotting buying anything but essentials after the sociopath won on November 5. and until that piece of

garbage is out of the WH I will NOT be participating in supporting his economy as a consumer.

[bucolic_frolic]

5. And that's just the % of people who are aware of what's happening.

Do 40% of Americans realize where we're headed? Wait until the other 60% find out.

[Hotler]

6. A reminder, shut the spending down. Do not give the fascist an economic win.,

Your consumer dollars have power and leverage. Also, shut down credit card usage. The banks make money every time you whip it out. Cutting out a $1.00 a day, $7.00 a week is resistance.

https://democraticunderground.com/10113602

[Johnny2X2X]

7. Don't spend to protect yourself

Now is the time to build savings, while everyone is still working, while there is upward pressure on wage growth still.

The political aspect of it is secondary IMO, people need to watch out for themselves.

I get my bonus next month, I usually do a big project to the house, new doors a couple eyars ago, new floors last year. This year it's going into savings.

[Hotler]

8. +1, If you're not spending you're saving.

Be well

[progree]

9. Inflation adjusted, that's about a 1.4% drop.

Retail sales dropped 0.9% in January

Media retail sales reports are rarely inflation adjusted. And neither is the Commerce Dept's reports
https://www.census.gov/retail/marts/www/marts_current.pdf

The CPI increased 0.5% in January over December.
https://www.democraticunderground.com/10143394541

So as far as actual product rather than nominal dollars, it's more like 1.4% drop.

[mahatmakanejeeves]

10. Same thing, from Reuters:

US retail sales fall sharply in January

Reuters
Fri, February 14, 2025 at 8:38 AM EST 2 min read

WASHINGTON (Reuters) - U.S. retail sales fell more than expected in January, likely as frigid temperatures kept consumers from automobile showrooms.

Retail sales dropped 0.9% last month after an upwardly revised 0.7% increase in December, the Commerce Department's Census Bureau said on Friday. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, dipping 0.1%.

Much of the country was blanketed by snowstorms and freezing temperatures last month. Wildfires in California could also have hurt sales.

Some of the decline was likely payback after four straight months of strong gains, partly reflecting pre-emptive buying by consumers in anticipation of tariffs on imports that would raise prices for goods. ... A 25% tariff on Mexican and Canadian goods was delayed until March. An additional 10% levy on goods from China went into effect this month.

{snip}

[CanonRay]

11. Notice how they don't attribute it to us not spending during the Trump regime

I think we are affecting the numbers.

[Johnny2X2X]

12. Yeah

Everything to diminish Trump's negative impact. The media is not our ally, they work for their corporate overlords.

Een before he took office there was chaos and people were scared. Scared people do not spend. Even if those scared people don't think the economy is about to tank, there is still too much uncertainty to commit large expenses.

[mdbl]

13. so my boycott of Amazon has nothing to do with it?

Damn! I'll keep trying.

[CountAllVotes]

14. K&R

& recommend.

[pfitz59]

15. Most everyone I know is maxxed out on credit

and tapped out of ready cash. They are holding onto their IRAs and 401Ks and hoping the stock market doesn't plummet. Prices on everything have skyrocketed. Restaurants and businesses are struggling. Now with the massive federal layoffs and rescinded grants unemployment is increasing. I foresee a lot of defaulted mortgages (ala 2008). I'm sure private equity is salivating over the opportunity for another land grab.

[Johnny2X2X]

16. Stats don't bare that out

Bottom 50% right now have record high net worths.



2/3s of Americans have more in emergency savings than they do in credit card debt.

https://www.yahoo.com/news/one-third-americans-more-credit-155307629.html

Joe Biden built the best economy for the middle class in generations, people are as well positioned as they've ever been right now, despite inflation. Now I believe that is about to change rapidly because of Trump's and Musk's impending war on working people, but as far as financial wellbeing, this is it right now, working people have not been better off since Jimmy carter was President.

[Hotler]

17. kicking. nt

[Marthe48]

18. There is a spending blackout Feb 28th

Avoid buying anything on Feb. 28. Don't buy gas, food, takeout, just don't spend money on goods on Feb. 28. If you have to buy, buy local. This is to support DEI by boycotting corporations that scaled back their DEI programs and policies, but let's make it a rebellion against consumerism in general.

https://www.yahoo.com/news/feb-28-economic-blackout-know-130236594.html