US retail sales slip 0.2% in January as consumers pull back
Mar 7th 2026
Retail sales fell 0.2% in January as weak auto and gas receipts and bad winter weather depressed in-store spending, even as core sales and online shopping showed modest gains.
- Retail sales fell 0.2% in January, missing economists forecasts after a flat December print.
- The Commerce Department report was delayed by a 43-day government shutdown.
- Sales at motor vehicle dealers and gas stations were the biggest drags on January retail receipts.
- Excluding autos and gas, core retail sales rose 0.3% and the control group used for GDP calculations also gained 0.3%.
- Online retail sales increased 1.9% while in-store categories like health and personal care fell 3% and clothing fell 1.7%.
- Severe winter weather is cited as a factor weighing on in-person shopping in January.
- Gasoline prices jumped in early March amid Middle East tensions, with AAA reporting a national average of $3.32 per gallon versus $2.98 a week earlier.
- The retail report arrived alongside a Labor Department release showing employers cut 92,000 jobs in February and the unemployment rate rose to 4.4%.