Overview
- Retail sales increased by 0.2% in February, recovering from a 1.2% drop in January but falling short of the 0.6% growth forecasted by analysts.
- Consumer spending remains muted, with declines in categories like dining out, clothing, and gas station sales, while online retail and health stores saw modest gains.
- The U.S. economy continues to face uncertainty due to President Trump’s tariff policies, mass federal layoffs, and declining consumer sentiment.
- Economists warn that cautious consumer behavior and concerns over job security could slow economic growth in the coming months.
- The Federal Reserve is expected to maintain interest rates this week, as inflation remains above its 2% target and economic risks persist.