March 16, 2023 — According to the National Retail Federation (NRF), overall retail sales dipped slightly in February, but core spending rose.
 
As job wages continue to grow and inflation trends downward, NRF president and CEO Matthew Shay says the dip is unsurprising considering January’s strong results, and NRF chief economist Jack Kleinhenz added that February is typically the slowest month of the year.
 
“Sales are higher than last year and that’s due in large part to the strong labor market, which means more income and spending,” says Kleinhenz. “We are seeing a decent trend for retail sales growth built on the upward revisions to December and January sales. Nonetheless, seasonal adjustment factors the government is applying to the monthly data to account for irregular post-pandemic spending patterns make it difficult to accurately measure the strength of the consumer.”
 
The U.S. Census Bureau reported overall retail sales in February were down 0.4% from January but up 5.4% compared to last year. January’s numbers were up 3.2% compared to December and up 7.7% year over year.
 
NRF’s calculation of retail sales—which excludes auto dealers, gas stations, and restaurants—showed February up 0.5% from January and up 5.6% unadjusted compared to last year. January’s numbers were up 2% compared to December and up 6.9% compared to last year. As of February, NRF’s numbers were up 6% unadjusted year over year on a three-month moving average.
 
Led by general merchandise stores, online sales, and health and personal care stores, February sales were up in all but one retail category on a yearly basis. On a monthly basis, retail sales increased in 5 out of 9 categories.
 
The following are some specifics from key sectors, seasonally adjusted from January and unadjusted from February 2022:
 

• General merchandise stores were up 0.5% from January and 10.7% compared to last year.
• Online sales were up 1.6% from January and 8.5% compared to last year.
• Health and personal care stores were up 0.9% from January and 8% compared to last year.
• Clothing and clothing accessory stores were down 0.8% from January but up 4.1% compared to last year.
• Sporting goods stores were down 0.5% from January but up 3.4% compared to last year.

 
For more information: nrf.com.