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Timely insights from the Economy, Strategy & Finance Center
Retail sales for January showed consumers pulled back sharply from a robust pace of spending at the end of 2024, which was likely driven by consumers stockpiling in anticipation of potential tariffs. Still, solid fundamentals, namely strong growth in personal income and healthy balance sheets, will likely lead consumer spending to improve in the remainder of Q1.
Figure 1. Retail Sales Plunge in January
Sources: Census Bureau and The Conference Board.
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