Retail Sales Tumble 0.9% in January, Worse Than Expected

The Census Bureau's Advance Retail Sales Report for January showed a sharper-than-expected decline, with headline sales falling 0.9%—the largest monthly drop since March 2023 and the first decline in five months. Meanwhile, December's figures were revised upward to a 0.7% gain. The latest data came in weaker than the anticipated 0.2% drop in consumer spending.

For an inflation-adjusted perspective on retail sales, take a look at our Real Retail Sales commentary.

Retail Sales Month Over Month

Here is the introduction from today's report:

Advance estimates of U.S. retail and food services sales for January 2025, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $723.9 billion, down 0.9 percent (±0.5 percent) from the previous month, and up 4.2 percent (±0.5 percent) from January 2024. Total sales for the November 2024 through January 2025 period were up 4.2 percent (±0.5 percent) from the same period a year ago. The November 2024 to December 2024 percent change was revised from up 0.4 percent (±0.5 percent)* to up 0.7 percent (±0.3 percent).

Retail trade sales were down 1.2 percent (±0.5 percent) from December 2024, and up 4.0 percent (±0.5 percent) from last year. Motor vehicle and parts dealers were up 6.4 percent (±1.8 percent) from last year, while food service and drinking places were up 5.4 percent (±1.9 percent) from January 2024.