U.S. retail sales in February grew steadily, with oil prices becoming a hidden concern

Odaily · 2026-04-01T19:16:14+00:00

U.S. Department of Commerce data shows that retail sales in February rebounded more than expected due to auto purchases, increasing by 0.6%. However, the Middle East conflict has caused oil prices to surge, which may suppress future consumption. Core retail sales, excluding autos and gasoline, grew by 0.5%, and the slowdown in consumer spending is impacting GDP.

Odaily

2026-04-01 19:16:14

Abstract generation in progress

Odaily Planet Daily News, according to data released by the U.S. Department of Commerce on Wednesday, retail sales in February rose by more than expected, driven by broad growth, including a rebound in vehicle purchases. However, the Middle East war has sent gasoline prices soaring, which may dampen consumption over the coming months. Retail sales not adjusted for inflation fell slightly in January and then rose by 0.6% in February. The U.S.-Iran war has pushed global oil prices up by more than 50%, and the nationwide average retail gasoline price has risen to above $4 per gallon, for the first time in more than three years. Market concerns are that if gasoline prices keep rising, they could offset part of the boost to consumer spending and the overall economy from tax relief. Retail sales excluding vehicles, gasoline, building materials, and food services increased by 0.5% in February, after rising by 0.2% in January. This so-called “core retail sales” is most closely aligned with the portion of GDP consumption spending. Consumption spending slowed in the fourth quarter of last year, dragging the GDP annualized growth rate down to 0.7%; (Jin10)

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

1 Likes