14.02.2025 15:55

U.S. retail sales unexpectedly plummeted 0.9% in January, significantly underperforming market forecasts. This sharp decline, reported Friday by the U.S. Census Bureau, contrasts sharply with December's revised 0.7% increase and the anticipated 0.1% decrease. Total sales for the three-month period spanning November 2024 to January 2025 did show a 4.2% year-on-year increase, offering a slightly more positive, albeit less immediate, perspective.


The January figures, revealing a sales total of $723.9 billion, paint a concerning picture of consumer spending. A 1.2% month-on-month drop in retail trade sales further underscores the weakness in the sector. While annual growth in retail trade stands at 4.0%, the immediate downturn suggests a potential weakening in economic momentum.


This disappointing retail sales data sent the U.S. dollar lower. At the time of writing, the U.S. Dollar Index (USDX) had fallen 0.15%, trading below 107.00 at 106.90. The negative market reaction clearly reflects concerns stemming from the weaker-than-anticipated consumer spending figures. This significant deviation from expectations has triggered a reassessment of the current economic climate.