NEW YORK — After beginning the year in a buying mood, Americans slowed their spending in February on gadgets, home furnishings and other discretionary items as higher prices for food, gasoline, and shelter are taking a bigger bite out of their wallet.
Retail sales increased 0.3% after registering a revised 4.9% jump from December to January, fueled by wage gains, solid hiring and more money in banking accounts, according to the Commerce Department. January’s increase was the biggest jump in spending since last March, when American households received a final federal stimulus check of $1,400.
Business at furniture and home furnishing stores fell 1% in February, while sales at consumer electronics and appliance stores slipped 0.6%. General merchandise stores saw business down 0.2%, while online sales fell 3.7%. Restaurant sales rose 2.5% as shoppers shift more of their spending to services as the threat of COVID-19 fades.
And there are new pressures that could send prices even higher, namely the Russian invasion of Ukraine. Most Western companies including retailers like Nike, fast-fashion retailer H&M, and coat maker Canada Goose have suspended sales in Russia after Russia sent tank columns toward the capital of Kyiv and heavily shelled the southern seaport of Mariupol and other urban centers.
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