US retail sales decline 0.9% in January marking largest drop in nearly two years

U.S. retail sales fell 0.9% in January, the largest drop in nearly two years, following a 0.7% increase in December. Nine of thirteen categories, including motor vehicles and furniture, reported declines, influenced by severe weather and wildfires. The decrease comes after strong holiday sales in late 2024. Consumers are facing high inflation and borrowing costs, leading to increased reliance on credit. Delinquency rates are rising as interest rates remain elevated. Sales in the control group, which impacts GDP calculations, also dropped 0.8%. While spending at restaurants increased, overall retail figures suggest a shift in consumer behavior amid economic pressures and potential future tariffs.