Trending Now - Retail Sales Decline in January Amid Consumer Spending Slowdown

WHO:

American consumers

Commerce Department

Walmart Inc.

Target

Home Depot

Labor Department

President Trump

WHAT:

Retail sales fell 0.2% in January 2026.

Retail sales had a flat reading in December 2025.

Sales at health and personal care stores fell 3% from December 2025.

Gas station receipts declined by 2.9%.

Sales at clothing stores fell 1.7% from December 2025.

Sales at furniture and home furnishing stores rose 0.7%.

Sales of building materials rose 0.6%.

American employers cut 92,000 jobs in February 2026.

The unemployment rate increased to 4.4%.

In January 2026, companies added 126,000 jobs.

Economists had anticipated 60,000 new jobs in February 2026.

Retail sales at department stores fell by 6%.

Retail sales at personal care shops fell by 3%.

Retail sales at gasoline stations fell by 2.9%.

A measure of underlying demand advanced 0.35% in January 2026.

WHERE:

United States

WHEN:

January 2026

December 2025

February 2026

Report issued on Friday, March 6, 2026.

The government shutdown lasted 43 days.

WHY:

Consumer spending pulled back due to a lack of confidence and harsh cold weather.

Retailers are facing a shifting tariff landscape affecting hiring and merchandise orders.

The Supreme Court struck down tariffs imposed by Trump, who is replacing them with new tariffs.

HOW:

The retail sales report was delayed due to the government shutdown.

The figures are adjusted for seasonal swings but not for inflation.

In a report issued today, the Commerce Department revealed that retail sales in the United States fell by 0.2% in January 2026, following a flat reading in December 2025, with notable declines in sales at department stores and personal care shops. Meanwhile, American employers cut 92,000 jobs in February, raising the unemployment rate to 4.4%, despite companies adding 126,000 jobs in January, which was significantly higher than the anticipated 60,000. The report highlights that consumer spending has pulled back due to a lack of confidence and harsh weather, while retailers are navigating a changing tariff landscape following the Supreme Court's decision to strike down tariffs imposed by Trump.