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US retail sales increase solidly in February
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US retail sales increase solidly in February
Apr 1, 2026 6:11 AM

WASHINGTON, April 1 (Reuters) - U.S. retail sales

increased solidly in February as motor vehicle purchases

rebounded and temperatures warmed up, but surging gasoline

prices because of war in the Middle East could crimp spending in

the months ahead.

Retail sales rose 0.6% after a revised 0.1% dip in January, the

Commerce Department's Census Bureau said on Wednesday.

Economists polled by Reuters had forecast retail sales, which

are mostly goods and are not adjusted for inflation, rising 0.5%

after a previously reported 0.2% drop in January. The Census

Bureau is still catching up on data releases following delays

caused by last year's government shutdown.

The U.S.-Israeli war with Iran has sent global oil prices

surging more than 50%, and the national average retail ​gasoline

price topped $4 a gallon for the first time in more than three

years. There are concerns that if gasoline prices continue to

rise, they could offset some of the anticipated boost to

consumer spending and the overall economy from tax cuts.

The month-long conflict has also reduced household net

worth, with the S&P 500 index and Dow Jones Industrial Average

in March posting their biggest monthly decline in a long time.

Higher-income households have led consumer spending,

underpinned by robust wealth levels.

Retail sales excluding automobiles, gasoline, building

materials and food services increased 0.5% in February after

rising 0.2% in January. These so-called core retail sales

correspond most closely with the consumer spending component of

gross domestic product. Consumer spending slowed in the fourth

quarter, helping to hold back GDP growth to a 0.7% annualized

rate. The economy grew at a 4.4% pace in the third quarter.

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