Retail Sales Rebound in February on Warmer Weather and Auto Purchases

Retail sales rebounded in February after a decline in January, driven by increased spending on building materials and gardening equipment.

Auto sales also helped drive the retail sales increase, rising 1.6% in February after falling over 2% the prior month.

Warmer weather in parts of the U.S. contributed to higher building material sales and lower winter apparel sales.

Online retail sales continued their recent decline, falling 0.1% in February, while restaurant sales rose.

Forecasts suggest consumer spending growth will cool in 2023 to around 2-3% annually due to high prices and interest rates impacting affordability.