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Concerns over tariffs weigh on US retail spending

Mar 13, 2025 United States

Despite growing year-over-year, US retail spending fell on a monthly basis in February amid concerns over tariffs, according to the CNBC/NRF Retail Monitor

“Consumer spending dipped slightly again in February due to the combination of harsh winter weather and declining consumer confidence driven by tariffs, concerns about rising unemployment and policy uncertainty,” Nation Retail Federation’s President and CEO Matthew Shay said.

According to the organisation’s CNBC/NRF Retail Monitor, total retail sales, excluding automobiles and gasoline, fell by 0.22% on a seasonally adjusted basis month-over-month in February, but rose by 3.38% on an unadjusted basis year-over-year. This compares to a 1.07% month-over-month decline and a 5.44% year-over-year increase in January, the organisation pointed out.

The data also shows that core retail sales (excluding restaurants in addition to automobile dealers and gasoline stations) also decreased by 0.22% month-over-month in February, but increased by 4.11% year-over-year. This compares to a decrease of 1.27% month-over-month and an increase of 5.72% year-over-year in January.

In particular, sales in clothing and accessories stores were down by 0.78% month-over-month seasonally adjusted, but up by 3.75% year-over-year unadjusted.

Shay continued: “Unease about the probability of inflation and paying higher prices for non-discretionary goods has the value-conscious consumer spending less and saving more. But for the moment, year-over-year gains reflect an economy with strong fundamentals”.

Image Credits: reuters.com

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