US retail sales drop sharply at the start of the year

(Sharecast News) - Americans reined in their spending unexpectedly at the start of 2024. According to the Department of Commerce, in seasonally adjusted terms, retail sales volumes dropped at a month-on-month pace of 0.8% in January to reach $695.78bn.

That was on top of a two tenths of a percentage point downwards revision to the prior month's month-on-month gain to 0.4%.

Sales of building materials and garden equipment were especially weak, shrinking by 4.1% over the month, alongside a 1.7% in sales at motor vehicles and parts dealers.

The key non-store retailer category saw sales decline by 0.8%.

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