Retail Sales Show Signs of Rebound Amid Economic Concerns

U.S. retail sales slightly increased in February but reflect consumer caution amidst economic uncertainties. Core retail sales rose by 1.0%, suggesting moderate ongoing economic growth, despite challenges like tariffs and increased layoffs affecting consumer sentiment and spending.

In February, U.S. retail sales saw a modest rebound, highlighting consumer caution against a backdrop of economic uncertainty. The Commerce Department's recent report indicates that while the economy continues to grow, consumers are exercising restraint in their spending habits.

The report reveals a 0.2% increase in retail sales last month, following a 1.2% decline in January. Notably, online store sales jumped by 2.4%, while other sectors like auto dealerships and clothing stores witnessed a decline. Lower gasoline prices also lowered sales values at service stations by 1.0%.

Despite the slight growth, consumer sentiment is declining, hitting a near 2-1/2-year low in March. With ongoing concerns over tariffs, inflation, and job security, economists predict consumer spending may further weaken in the coming months. The Federal Reserve's upcoming decisions will be crucial in navigating these economic challenges.

(With inputs from agencies.)