U.S. retail sales unexpectedly eased in February on declines in grocery stores and building materials, which could potentially reflect cooler weather, though also may signal further headwinds for the economy in the first quarter.
Figures released Monday by the U.S. Commerce Department revealed that the value of overall sales south of the border fell 0.2% after an upwardly revised 0.7% increase the prior month. The median forecast of economists called for a 0.2% gain.
The department's report also says consumer spending will be limited as a growth driver in the first quarter, with main factors also including smaller-than-expected tax refunds and global economic weakness that may weigh on jobs. At the same time, rising wages, a stock-market rally and steady interest rates are likely to be pillars for consumption in coming months.
Seven of 13 major retail categories showed declines, led by a 4.4% drop in building materials and garden supply stores that was the steepest since April 2012. Food and beverage stores posted a 1.2% drop, the most in a decade.
Sales at automobile dealers climbed 0.7% after an upwardly revised 1.9% drop in the previous month. Industry data from Wards Automotive Group previously showed unit sales fell to the lowest level since 2017.
Excluding automobiles and gasoline, retail sales slumped 0.4%, after a 1.4% advance the previous month.
