Americans spent slightly more at retail stores last month

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, near 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. Wal-Mart said last month that the delay had slowed sales at its stores in February. Other retailers have reported similar concerns.

Yet tax refunds have started to flow this month, which could trigger a rebound.

Economists were also encouraged by the upward revisions to January’s sales data, which point to potentially faster growth in the first three months of the year.

A separate report showed inflation rose in February and is now comfortably above the Federal Reserve’s target of 2 percent. The Fed is expected to announce its third rate hike in 15 months later today.

“Inflation is trending gradually higher and underlying retail sales are healthy enough,” said Paul Ashworth, chief U.S. economist at Capital Economics. “Nothing here to suggest the Fed shouldn’t raise interest rates at the FOMC meeting that concludes later today.”

What was and wasn’t selling

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.