SNAPSHOT: Retail Sales Decline

Retail sales fell 0.4% in February, but this was after an incredible 3.2% gain in January.

Fill me in: Retail sales are a subsection of total spending. It includes spending at retail stores (including online) and at bars and restaurants, but it doesn’t include services, business spending, or investment.

Why it matters: The decline may lead many to believe consumer strength is weakened. But based on last month’s data, consumers still can spend despite inflation, dwindling savings, and shrinking room on their credit cards.

The big picture: Consumer strength has buoyed the economy since COVID. As long as the job market remains robust and incomes remain steady, consumers will have money to spend, even if they are falling slightly behind inflation.

Learn more: For more snapshots of the U.S. economy from the Economic Policy Division at the U.S. Chamber of Commerce, click here.