US retail sales drop as demand for motor vehicles and at non-store retailers fall back

(Sharecast News) - Americans pulled back on their spending at the start of the year. According to the US Department of Commerce, in seasonally adjusted terms, retail sales volumes shrank in January at a month-on-month clip of 0.9% to reach $723.9bn (consensus: 0.3%).

The shortfall with respect to economists' forecasts was partially made up by an upwards revision to the prior month's reading from 0.4% to 0.7%.

Sales of motor vehicles and parts were down sharply, by 2.8% when compared with December.

In absolute terms, the decline accounted for over half of the drop in retail sales volumes.

Non-store retail sales also registered a hefty decline in absolute terms.

Furniture and home furnishing sales were also weak, falling by 1.7% while those of building materials dropped by 1.3% and those at sporting goods stores by 4.6%.

Sales at gasoline stations meanwhile rose 0.9% on the month.

In year-on-year terms, retail sales were ahead by 4.2%.

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