American-Retail Sales grew at a Slower Pace in February

According to the Commerce Department, retail sales in the USA rose 0.3% in February, slowing from a  4.9% surge in January. Consumers have spent more on gas and cars while reducing online spending and buying necessities such as furniture and electronics.

The report suggests that consumers are ready to break out of the recent wave of Covid 19 cases caused by  Omicron variants. Spending on restaurants and bars in February increased by 2.5%, the highest since May last year.

Due to the soaring gasoline prices after the Russia-Ukraine war, sales at gas stations increased by 5.3%, the largest increase since March last year. In addition, sales of automobiles and auto parts, which were restrained by the shortage of computer chips, increased by 0.8% after increasing by 6.9% in January.

Retail sales, excluding automobiles and gasoline, fell 0.4% in February. This is primarily a decline from the 5.2% rise in January but could be an early sign that inflation is making people more cautious.

The National Retail Federation predicts that 2022's annual retail sales will increase between 6% to 8% in 2022, low from 14% in 2021 but still above pre-pandemic levels.