That didn’t last long.
Shoppers pulled back on their spending in January, but apparently picked it back up last month.
Retail sales rose 0.6% last month after falling a revised 1.1% in January, dragged down in part by inclement weather, according to a report released Thursday by the Commerce Department. February’s number was lifted in part by higher gas prices and higher auto sales.
Excluding sales from gas stations and auto dealers, sales were up 0.3%.
Business at general merchandise stores rose 0.4%, while electronics and appliance stores had a solid 1.5% increase. Restaurants posted a 0.4% increase. Furniture and home furnishings stores saw a 1.1% decline. Online sales were down 0.1%.
According to a report from the Associated Press, household spending is being fueled by a strong jobs market and rising wages. But spending has become choppy in the face of rising credit costs and higher prices.
America’s employers continued to hire in February, adding 275,000 jobs, underscoring the U.S. economy’s resilience despite efforts of the U.S. Federal Reserve to knock down inflation by slowing spending.
“They continue to shop but they are more constrained, ” Target’s CEO Brian Cornell told The Associated Press in an interview last week. “People are using credit cards to get through the month. Rent costs across the country are up, and gas has been volatile.”
The government’s monthly retail sales report offers only a partial look at consumer spending; it doesn’t include many services, including travel and hotel lodges. It’s also not adjusted for inflation, the AP pointed out.
