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According to the Commerce Department, retail and food sales fell 1.3 percent in February compared with the previous month, led by a steep 4.9 percent drop in auto sales.
In addition to auto dealers, furniture retailers took a big hit last month, with their sales off roughly 4 percent. So did clothing retailers (down 3.3 percent), electronics stores (down 2 percent), and department stores (down 1.4 percent).
February's results marked a major reversal from January, when consumers continued to shop till they dropped well after the holiday shopping season was over. But given the strength of January's sales, the slide in spending last month was to be expected.
Keep in mind that the Commerce Department actually revised January sales figures even higher, meaning that the retail economy grew faster in January than was first thought. At the start of the year, retail sales actually grew 2.9 percent, not 2.3 percent as was initially reported, as the unusually warm weather encouraged shoppers to hit the stores. Excluding auto sales, the overall retail economy expanded 2.6 percent in January. That was the biggest monthly increase since 1979.
Another reason retail sales fell in February was that gasoline prices dropped. Overall sales for gas stations last month slid 1.6 percent. But lower gas prices should eventually be stimulating for the retail economy, as they mean shoppers can afford to spend more.
