Retail sales were mixed in January, to kick off 2025, according to data respectively issued earlier today by the United States Census Bureau of the Department of Commerce and the National Retail Federation (NRF).
Commerce reported that January retail sales, at $723.9 billion, fell 0.9% annually, while posting a 4.2% annual gain, with total retail sales, from November through January, increasing 4.2% compared to the same period a year ago.
Retail trade sales decreased 1.2% from December to January and were up 4.0% annually, noted Commerce, with motor vehicles and parts dealers’ sales up 6.4% annually, and food service and drinking places up 5.4%.
NRF reported that January’s retail sales, which are based on Census data and excludes automobile dealers, gas stations, and restaurants, decreased 0.9% compared to November on a seasonally-adjusted basis and were up 4% annually on an unadjusted basis, with core sales up 4.1% annually on a three-month moving average.
“It’s reasonable to expect some slowdown from the vigorous 2024 holiday season, so January’s numbers are not a surprise and don’t contradict the consumer spending trends we experienced,” NRF Chief Economist Jack Kleinhenz said. “The slower spending reflects weaker payroll growth in January, and higher prices remain a challenge for most households. Cold weather in many parts of the country and wildfires in California were likely headwinds that disrupted demand and consumer patterns. Nonetheless, these results point to a stable economy and provide a solid start to 2025.”
Earlier this week, the CNBC/NRF Retail Monitor, powered by Affinity Solutions, reported that core retail sales were down 1.27% seasonally adjusted month over month in January but up 5.72% unadjusted year over year. That compared with increases of 2.19% month over month and 8.41% year over year in December.
