The Digester

US retail sales fall 0.2% in January, biggest drop since May

Mar 6th 2026

Spending at US retailers unexpectedly dipped as cold weather and weak consumer confidence weighed, with a key measure of underlying demand ticking up slightly.

  • Retail sales fell 0.2% in January, the largest monthly decline since May.
  • Economists had expected flat sales, according to a FactSet poll.
  • The Commerce Department report was delayed by weeks due to last year’s government shutdown and numbers are seasonally adjusted but not inflation adjusted.
  • The retail sales control group, which excludes volatile items, rose 0.35% in January.
  • Department stores, personal care shops, and gasoline stations led declines at -6%, -3%, and -2.9%, and economists expect larger tax refunds to boost spending in early 2026.

Sources

cnn.com