In January 2025, U.S. retail sales declined significantly by 0.9% from the previous month, marking the largest drop in nearly two years.
According to Yahoo News, This downturn follows a robust holiday shopping season and has raised concerns about the economic outlook for the first quarter.
Several elements have been identified as contributing to this unexpected slump:
Post-Holiday Spending Restraint: Consumers often reduce spending following the holiday season, decreasing retail activity in January.
Severe winter storms and extensive wildfires, particularly in California, disrupted consumer behavior and kept many indoors, limiting retail foot traffic. […]
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