US Retail sales plummet in january, signaling economic concerns

The Commerce Department's latest report has revealed that consumer spending took a severe hit in January, raising concerns about the country's economic outlook. Advanced retail sales saw an alarming 0.8% decline in the month, following a downwardly revised 0.4% increase in December, as per data from the Census Bureau.

Economists' projections vs. actual figures

Economists surveyed by Dow Jones had anticipated a more moderate 0.3% decrease, attributing it to the readjustment after the presumed seasonal distortion that inflated December's figures. However, the actual drop was much steeper than expected, with sales plunging 0.6% even when excluding automotive sales, which was significantly below the projected 0.2% increase.

Unaccounted factors

It's important to note that while the sales report is adjusted for seasonal factors, it does not account for inflation. This development is a significant warning sign for the economy and could have far-reaching implications.