- Harris to release medical report confirming fitness for presidency: campaign
- Nobel prize a timely reminder, Hiroshima locals say
- Hezbollah fires at Israel as wars rage on Yom Kippur
- Analysts warn more detail needed on new China economic measures
- China tees up fresh spending to boost ailing economy
- China says will issue special bonds to boost ailing economy
- China offers $325 bn in fiscal stimulus for ailing economy
- Dodgers drop Padres 2-0 to advance in MLB playoffs
- Alexei Navalny wrote he knew he would die in prison in new memoir
- Last-minute legal ruling allows betting on US election
- Despite hurricanes, Floridians refuse to leave 'paradise'
- Israel observes Yom Kippur amid firestorm over Lebanon strikes
- Trump demonizes migrants in dark, misleading speech
- X says 'alert' to manipulation efforts after pro-Russia bots report
- US, European markets rise before Boeing unveils sweeping job cuts
- Small Quebec company dominates one part of NHL hockey: jerseys
- Comoros shock Tunisia, Salah, Mbeumo strike in AFCON qualifiers
- Boeing to cut 10% of workforce as it sees big Q3 loss
- Germany win in Nations League as 10-man Dutch rescue point
- Undav brace sends Germany to victory against Bosnia
- Israel says fired at 'threat' near UN position in Lebanon
- Want to film in Paris? No sexism allowed
- Ecuador's last mountain iceman dies at 80
- Milton leaves at least 16 dead, millions without power in Florida
- Senegal set to announce breakaway development agenda: PM
- UN says 2 peacekeepers wounded in south Lebanon explosions
- Injury-hit Australia thrash 'embarrassing' Pakistan at Women's T20 World Cup
- Internal TikTok documents show prioritization of traffic over well-being
- Israel says fired at 'immediate threat' near UN position in Lebanon
- New US coach Pochettino hails Pulisic but worries over workload
- Brazil orders closure of 2,000 betting sites
- UK govt urged to raise pro-democracy tycoon's case with China
- Sculptor Lalanne's animal creations sell for $59 mn
- From Tesla to Trump: Behind Musk's giant leap into politics
- US, European markets rise as investors weigh rates, earnings
- In Colombia, children trade plastic waste for school supplies
- Supercharged hurricanes trigger 'perfect storm' for disinformation
- JPMorgan Chase profits top estimates, bank sees 'resilient' US economy
- Djokovic proves staying power as he progresses to Shanghai semi-finals
- Sheffield Utd boss Wilder 'numb' after Baldock death
- Little progress at key meet ahead of COP29 climate summit
- Fans immerse themselves in Marina Abramovic's first China exhibition
- Israel says conducting review after UN peacekeepers wounded in Lebanon
- 'Party atmosphere': Skygazers treated to another aurora show
- Djokovic 'overwhelmed' after 'greatest rival' Nadal's retirement
- Zelensky in Berlin says hopes war with Russia will end next year
- Kyrgyzstan opens rare probe into glacier destruction
- European Mediterranean states discuss Middle East, migration
- Djokovic proves staying power as progresses to Shanghai semi-finals
- Hurricane Milton leaves at least 16 dead as Florida cleans up
US retail sales in January log biggest fall in almost a year
Retail sales in the United States slipped more than anticipated last month, retreating after the holiday season and bogged down by auto sales and gas prices, government data showed Thursday.
The 0.8 percent seasonally adjusted decline went beyond analyst expectations of a 0.2 percent drop, bringing total sales down to $700.3 billion, the Commerce Department said.
The slide was the biggest in nearly a year and comes after a strong showing in general for the consumer sector in 2023, which -- helped by labor market resilience -- supported economic growth.
A larger than expected slowdown in spending, if it persists, could dim hopes that consumption continues its role as a key economic driver.
"It's a weak report, but not a fundamental shift in consumer spending," said Navy Federal Credit Union corporate economist Robert Frick.
He added that the pullback in January came after the December holiday shopping period, while cold weather put a damper on the situation as well.
Excluding the auto sector, retail sales fell 0.6 percent in January from December.
Analysts attribute the auto sector weakening to higher rates on loans and the unwinding of pent up demand after supply chain problems were resolved.
Removing gasoline stations, sales were down 0.8 percent over the same period.
Motor vehicles and parts dealers, as well as gas stations, saw sales drop by 1.7 percent respectively, latest Commerce Department data showed.
Other areas showing weakness included building material and supplies, as well as health and personal care.
But spending at restaurants and bars continued to hold up, expanding 0.7 percent.
- Consumption slowdown? -
The "control" group of goods, watched by analysts, "is pointing to a sharp slowing in consumption" in the first quarter, said Rubeela Farooqi of High Frequency Economics.
That group excludes gasoline, cars and building materials.
But Farooqi added that "we would hesitate to overemphasize one data point."
While consumers face challenges from higher borrowing costs after the Federal Reserve rapidly hiked interest rates to tame inflation, the central bank is expected to lower rates this year.
"Consumers' spending was remarkably strong for much of last year, but some softening seems inevitable this year," said analysts at Pantheon Macroeconomics in a recent report.
The weakening comes as excess savings have "dwindled significantly, and real after-tax income growth is slowing," they added.
"But a gradual moderation seems much more likely than a collapse, given the recent upturn in consumers' confidence," Pantheon said.
C.Garcia--AMWN