Retail Sales Show Consumers Are More Frugal amid Uncertainty

Figure 1.  Shopping Online, Foregoing Dining Out

Sources: Census Bureau and The Conference Board.

Trusted Insights for What’s Ahead^®™

• A  weaker-than-expected rebound in retail sales in February from the January plunge corroborates our estimates that consumption growth will slow this year, limiting overall economic growth.
  
  
• Redirecting dollars towards necessities that have become more expensive, such as food and health and other personal items -- away from durable goods such as cars, furniture and electronics -- shows declines in consumer optimism (soft data) is starting to materialize in the hard data as well.
  
  
• While the data are not suggesting consumer is in a crisi