Spending rises slightly at retail stores
WASHINGTON — Americans spent only slightly more last month at retail stores compared with January, a sign of consumer caution despite rising optimism about the economy.
The Commerce Department said Wednesday retail sales ticked up a seasonally adjusted 0.1 percent in February, after a much bigger gain of 0.6 percent the previous month. January’s gain was revised higher.
The figures suggest that strong job gains this year, record-high stock prices and decent pay gains haven’t yet lifted spending. But last month’s sluggish pace could prove temporary.
Economists note that spending was likely held back by delays in tax refund payments. A new law has required tougher scrutiny of a tax credit claimed by lower-income taxpayers. Yet tax refunds have started to flow this month, which could trigger a rebound.
Sales rose in February at furniture stores and home and garden centers. But they fell sharply at electronics and appliance stores. Sales also fell at gasoline stations, though that mostly reflects lower prices. Clothing stores, sporting goods retailers and department stores also all reported lower sales.
There are several additional factors that could drive spending higher in the months ahead. Consumer confidence soared to its highest level in more than 15 years in February, according to the Conference Board, a business research group.
Yet the boost in confidence may not be broadly shared. For Americans younger than 35, who are less likely than older age groups to own houses or stocks, confidence fell last month. And the confidence data has grown increasingly political, with Republicans reporting much greater optimism than Democrats. That reverses a pattern that emerged under former President Barack Obama.