United States: Retail sales rebound in February
Latest reading: Nominal retail sales increased 0.6% on a seasonally adjusted month-on-month basis in February, following a 0.1% decline in the prior month that was linked to poor weather. February’s reading was the strongest since July 2025 and beat market expectations.
Relative to the previous month’s figures, readings in February improved for motor vehicle and parts dealers (+1.2% on a seasonally adjusted month-on-month basis vs -0.7% in January) and gasoline stations (+0.9% vs -1.9% in January). In contrast, readings worsened for food and beverages (-1.0% vs +0.1% in January), general merchandise stores (0.0% vs +0.3% in January) and non-store retailers (+0.7% vs +1.4% in January).
In annual terms, retail sales were up 3.7% in February, following a 3.2% increase in the previous month.
Panelist insight: TD Economics’ Ksenia Bushmeneva said:
“This was a solid report, with retail sales rebounding in February following weather related weakness in January. Still, even with today’s increase, retail sales volumes are up about 1% in inflation adjusted terms from their year-ago level, suggesting consumers are remaining somewhat watchful. With the labor market having softened and price levels elevated, it’s no wonder consumers are cautious.”