Americans reduced their spending in February on furniture, gadgets, and other household items due to rising prices for gasoline, food, and shelter taking a larger portion of their pockets, a report said.
Retail sales increased by 0.3% following the revised 4.9% growth from December to January, driven by increases in wages, solid hiring, and increased money in bank accounts, as per the Commerce Department. January’s growth was the largest increase in spending since last March, the month American households received their final federal stimulus check of $1,400.
Furniture and home furnishing stores’ retail numbers fell 1% in February. Sales at appliance and consumer electronics stores dropped 0.6%. General merchandise stores’ business fell 0.2%, while online sales dropped 3.7%. Restaurant sales grew 2.5% as customers shift their spending towards services as COVID-19 recedes.
National Retail Federation has predicted that the growth of U.S. retail sales this year will be slowing between 6% and 8%, down from the previous record-breaking 14% annual growth rate for 2021.
Many retailers are preparing for how the war could add to supply issues, with news already telling of limited supplies of vegetable oils, wheat, and electronic components such as chips, which will probably push prices up. Alongside Russia’s invasion of Ukraine, increasing COVID-19-related cases and new restrictions in China could worsen the supply chain problems.
This story originally appeared on the Associated Press News.
It’s important to consider increasing costs and prioritize essential spending. Exploring cost-saving strategies can help alleviate financial pressure.