Retail shopping in the United States will fall as early as 2024

Last January, retail sales in the United States fell 0.8% compared to the previous December. Again, the adjusted figure increased by 0.4%. This was announced by the Commerce Department in a report in the first month of 2024.

If we remove those associated with car dealers and gas stations, sales fell 0.5%. The decline was greater than the 0.10% decline expected by economists. This is also the lowest monthly figure since March 2023.

Experts agreed that Americans reduced their spending at the end of last year. This is all due to the burden of credit card debt as well as their savings being depleted with high prices during the last three years.

It turns out that buyers slowed their spending in January, put off by high prices that rose even further that same month. This fact is contrary to the report given by the Federal Reserve regarding a significant reduction in inflation.

clothing sales fell

Sales of clothing and accessories also declined (0.2%) in the above period. Meanwhile, construction materials suppliers and suppliers declined 4.1%. This undoubtedly reflects the still weak and volatile market at the beginning of the year.

The United States Department of Commerce report also shows that sales at general merchandise stores remained stable. In contrast, online sales declined 0.8% and restaurant sales increased 0.7%.

Experts who conducted the study found that core consumer inflation rose to 3.9% over 12 months. However, economists confirm that this figure does not correspond to reality.

The issue of inflation in the country is absolutely a part of the current agenda of the Joe Biden administration. In fact, this is one of the main challenges of the current 2024; Low levels of inflation.