US shoppers showed a slight increase in spending in February after a sharp decline in January, reflecting a cautious approach amid growing economic concerns. Retail sales rose by 0.2%, recovering modestly from the 1.2% drop in the previous month. While spending increased at grocery stores, home and garden outlets, and online retailers, sales declined at auto dealerships, restaurants, and electronics stores.
The modest rise in retail activity suggests that consumers are becoming more cautious as uncertainty persists. Market volatility, tariff concerns, and government spending cuts have contributed to a more restrained approach to spending.
Consumer sentiment declined for the third consecutive month, with the University of Michigan’s survey showing a 20% drop since December. Many respondents pointed to policy uncertainty as a key factor in their growing pessimism. While confidence in the current economy remained higher among Republicans, their future outlook fell by 10%.
With consumer spending making up nearly 70% of the economy, this trend could indicate broader economic challenges in the coming months.
