Donald Trump's Tariff Threat

Causes uncertainty for businesses and consumers

Retail Sales in the United States Fall Short of Expectations

Economic uncertainty and Tariff Threat continues to affect businesses and consumers in the United States. Recently, the U.S. Department of Commerce released its report on consumer spending in retail stores for the month of February, and the results have been less encouraging than expected.

Lower Growth Than Projected

The report indicates that although retail sales increased by 0.2% compared to the previous month, this figure falls short of the initial projection of 0.7%. This signals a concerning slowdown in consumption, particularly in key sectors.

Among the most affected sectors, department stores recorded the largest decline, with a decrease of 1.7%. Restaurants and bars followed with a 1.5% drop, while gas stations saw a 1% decline. However, not all figures were negative. Online sales experienced a 2.4% increase, and health stores reported a 1.7% rise.

Factors of Uncertainty

Despite these figures, there is a positive aspect:

CNN highlights that retail spending saw a 1% increase compared to January, recovering from the previous decline.

However, this volatile behavior may be linked to growing concerns about the U.S. economy.

One of the factors generating the most uncertainty is the threat of new tariffs imposed by former President Donald Trump. Both businesses and consumers have expressed concerns about the impact these measures could have on the economy, which may be reflected in more conservative spending behavior.

Is a Recession Approaching?

In recent weeks, discussions have intensified about the possibility of the United States heading into a recession due to slowing economic growth.

Samuel Tombs, Chief U.S. Economist at Pantheon Macroeconomics, cited by Bloomberg, warns that consumers may be opting to save more in response to economic uncertainty and concerns about job stability.

In this context, businesses, investors, and economists remain cautious about economic prospects. Consumer confidence appears to be deteriorating, and with it, signs of financial strain are increasing, which could shape the direction of the U.S. economy in the coming months.

Source: thelogisticsworld.com