EL7.AI
Macro EconomyMediumUpdated•Originally published 6 March 2026•Updated 6 March 2026•
1 min read

US Retail Sales Fall 0.2% in January, Performing Better Than Expected

Key Facts

1The U.S. Commerce Department reported a decline in retail sales for the month of January.
2The decline extends a tepid trend in U.S. shopping observed since late last year.

U.S. retail sales declined by 0.2% in January, a smaller contraction than the 0.3% drop anticipated by market analysts. The Commerce Department also reported that retail activity for December remained flat at 0.0%, indicating a stabilization in consumer behavior following the holiday season. While the overall trend shows a cooling in demand, the fact that the decline was narrower than feared suggests the U.S. consumer remains somewhat resilient. This data could provide a modest boost to equity indices like the SPY and QQQ, as it mitigates fears of a severe economic downturn. Market participants are now assessing how these figures might influence the Federal Reserve's (Fed) upcoming decisions on interest rates in the context of persistent inflation.