Shoppers increased their spending in February, particularly on cars and clothing, after pulling back at the start of the year due to severe winter storms.
Retail sales rose a better-than-expected 0.6% in February, from a revised 0.1% decline in January, the Commerce Department said Wednesday.
But there’s concern that the Iran war, which is sending gasoline prices soaring and whose impact wasn’t reflected in the retail sales data, could derail spending at a time when Americans have already been squeezed by years of elevated inflation.
Gas sped past an average of $4 a gallon on Tuesday for the first time since 2022 and jumped another 4 cents overnight.
The national average for a gallon of regular gasoline hit $4.06 Wednesday. That was a dollar more per gallon before the war.
Sales at motor vehicle and auto parts dealerships rose a solid 1.2% in February. Excluding that sector, retail sales rose 0.4%
Business at clothing and accessories stores rose 2%, while sales at electronics and appliance stores were up 0.5%. Sales at online retailers rose 0.7%.
The snapshot offers only a partial look at consumer spending and doesn’t include things like travel and hotel stays. But the lone services category—restaurants—registered an increase of 0.4%.
Read the full story from the Associated Press.
