January was a terrible month for retail sales thanks. Blame the cold

In January, U.S. retail sales fell 0.9%, marking a significant drop after two months of gains. The coldest January since 1988 likely kept consumers indoors, impacting many retailers, especially auto dealers, who saw sales drop by 2.8%. Despite previous expectations for a surge in purchases before proposed tariffs, data indicates consumers may have been more conservative after holiday spending. This slowdown aligns with recent surveys suggesting waning consumer confidence, although steady hiring and wage growth continues to indicate economic expansion. Overall, the decline suggests slower growth anticipated in early 2023.

Retail sales fell 0.9% in January from the previous month, marking a much larger drop than economists expected and the biggest decline in a year.

Many consumers may have just cut back in January after splurging during the holiday season, indicating a potential correction in spending patterns.

Read at Fast Company