Retail sales around the U.S. rose a modest 0.2% in February, missing forecasts amid fears that the economy is slowing, new government data shows.
A number of major retailers have warned recently that Americans are paring back on spending. Consumer spending accounts for roughly two-thirds of economic activity. Sales in January was also revised down, according to the figures released Monday.
“Many observers were disappointed in January’s retail sales figures, and February’s numbers contribute to the ‘economic growth is slowing’ narrative,” Ted Rossman, senior industry analyst with Bankrate, said in an email.
“Consumer confidence has taken a big hit in recent weeks, due mostly to concerns about tariffs on top of already elevated prices, and we’re seeing increasing evidence that consumers are pulling back,” he added.
Last week, consumer sentiment dropped to a two-year low on concerns about economic growth, according to a gauge released by the University of Michigan. Experts say the Trump administration’s move to slap steep new tariffs on key U.S. trading partners has heightened uncertainty for consumers and businesses, while also spooking investors.
American retailers Kohl’s, Dick’s, Walmart and others have warned that they expect consumers to spend more cautiously this year, while airlines, including Delta, American and United cut their earnings forecasts this month amid similar concerns of an economic slowdown.
