January Retail Sales Decline Less Than Expected, Delayed Government Data Shows

11:10 AM EST, 03/06/2026 (MT Newswires) -- US retail sales fell less than expected in January as extreme weather conditions impacted spending on motor vehicles and gasoline, delayed government data showed Friday.

Sales were down 0.2% sequentially in January, following a flat reading the previous month, the Census Bureau said. The consensus was for a 0.3% decrease, according to Bloomberg-compiled estimates. On an annual basis, retail sales grew 3.2% in January, marking an acceleration from a 2.4% jump in the month prior.

The report was delayed due to the recent lapse in federal government funding, according to the Census Bureau.

Control group sales, excluding autos, gasoline, and building and garden retailers, rose by 0.3% in January, TD Economics Economist Ksenia Bushmeneva said in a separate report. That metric is used to help estimate real consumer spending growth in the gross domestic product report.

"Performance remained uneven, with several categories recording substantial declines, likely attributable to the severe winter weather in late January," according to Bushmeneva. "A notable drop in auto sales, alongside declines across many other retailers and a strong rebound in online sales, underscores the weather-related impact."

Spending at motor vehicle and parts dealers fell 0.9% month on month in January following a 0.2% decrease the month prior. Outlays at gasoline stations were down 2.9%, compared with a 0.1% decline in December. Spending at furniture stores rebounded, while sales continued to decline at clothing and electronics stores.

"The jump in gasoline prices amid the conflict with Iran is a new headwind on spending," Oxford Economics Chief US Economist Michael Pearce said in remarks emailed to MT Newswires. "The consumer outlook will get a knock from the jump in gasoline prices, which could add as much as (0.3 percentage points) to inflation this year, eating into real incomes and spending on other goods and services."

Oil prices have spiked recently amid the US-Israel war with Iran that entered its seventh day on Friday. Iran has effectively shut down the Strait of Hormuz, the world's most important chokepoint for crude flows, according to media outlets.

Retail sales without the motor vehicle and gas components were up 0.3% in January, topping Wall Street's views for a 0.2% increase.

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