Retail sales rebounded in February in a sign of resilient consumer spending

Retail sales rebounded in February after seeing their biggest decline in nearly a year during the previous month.

Retail sales rose 0.6% in February from the previous month, according to Census Bureau data. Economists had expected a 0.8% increase in spending, according to Bloomberg data. January retail sales previously posted a surprise decline of 1.1%.

“The modest rebound in retail sales in February suggests a slowdown in consumer spending growth in early 2024,” said Michael Pearce, deputy chief US economist at Oxford.

February sales, excluding autos and gas, rose 0.3%, in line with estimates.

Building materials and garden equipment led the gains by category, rising 2.2%. Sales increased by 1.6% at automobile and spare parts dealers, while sales at electronics and appliance stores increased by 1.5%.

The consumer checkup comes as the economy remains largely on solid footing to start 2024. Consensus expectations for economic growth rose in the first quarter while the labor market continued to add more jobs than previously expected.

Josh Schaeffer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.

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