Economic Watch: Retail Sales Drop on Cold Weather, Weak Income Growth
Retail sales in the U.S. have fallen for a second straight month according to new U.S. Commerce Department figures.


Retail sales in the U.S. have fallen for a second straight month according to new U.S. Commerce Department figures.
The 0.4% decline follows a downwardly revised 0.1% drop in December from a 0.2% gain. The performance was less than many economist were expecting.
The January decline was led by a 2.1% falloff in auto sales, the second straight drop. When sales of autos along with gasoline, building materials are removed, the January sales level was virtually unchanged from December.
Compared to a year ago, January’s retail sales level is 2.6% higher.
“A weak consumer report suggesting consumers continued to lose momentum at the start of the new year. Of course arctic winter temperatures certainly played a role here, dissuading consumers from going out and shopping but retail spending has been loosing momentum since an outsized monthly gain in October suggesting not all of the weakness can be explained away because of unfavorable weather conditions,” said Lindsey Piegza, chief economist with the investment firm Sterne Agee.
She said in the long run positive spending patterns can only be supported by underlying growth in jobs and income.
“We have seen the quantity of jobs continue to increase, although at a disappointing pace as of late- however, we have not seen quality job creation leading to income growth, as the vast majority of the jobs created have been in part-time or low wage sectors,” said Piegza.
She points out consumers were able to spend through the fourth quarter thanks in part to temporary factors like energy price reprieve and a lingering wealth effect from rising equity markets luring consumers out to spend and draw down their savings.
“Going forward, with rising energy prices expected to cost the average consumer an extra $500-$1,000 more this winter season to heat their home and fill up the family car, without income growth, consumption will remain under pressure,” Piegza said.
More Fleet Management

Adam Buttgenbach’s Approach to Electric Trucks: Start With Where They Fit
HDT Truck Fleet Innovator Adam Buttgenbach helped PepsiCo build one of North America’s largest EV fleets by focusing on where electric trucks make operational sense.
Read More →
Deen Albert: Let Automation Do the Math, People Make the Decisions
HDT Truck Fleet Innovator Deen Albert makes sure people are still at the heart of operations at Grand Island Express, even while adopting artificial intelligence tools. AI-assisted dispatch helped boost revenue 25% with the same number of trucks.
Read More →Trimble’s New AI Agent Takes Aim at Fleet Back-Office Busywork
Arc Agent works across Trimble TMS products to automate repetitive tasks such as freight orders, maintenance, invoices, fuel costs and more.
Read More →
How HDT’s 2026 Truck Fleet Innovators Are Rethinking Fleet Operations
Meet five trucking leaders who are challenging assumptions, solving operational problems, and putting innovative ideas to work.
Read More →
Tight Trucking Capacity Pushes Rates Higher Even as Freight Volumes Fall
“Spot rates moving ahead of contract rates have historically signaled a tightening market, but we haven’t seen a capacity-driven market quite like this one,” said DAT's Dean Croke.
Read More →
Import Cargo’s Early Peak Season is Winding Down
There was an early start to peak season this year at the nation's gateway ports, as retailers brought in merchandise ahead of tariff changes in late July and responded to other supply chain uncertainties,
Read More →
Fewer Cargo Thefts, Bigger Losses: Criminals Target Higher-Value Loads
CargoNet says organized theft rings are stealing fewer shipments but choosing more valuable freight, including metals and technology, resulting in record losses.
Read More →
How Innovative Trucking Leaders Turn Change Into an Advantage
As the pace of change accelerates in trucking, the fleets that adapt best have more than the latest technology. They have cultures that embrace improvement.
Read More →
Freight Broker Bonds Just Got Harder to Get. Here's What That Means for Your Fleet.
When it gets harder for a freight broker to prove they are financially sound, the ones who cannot clear that bar get pushed out of the market. And those are exactly the brokers who used to leave motor carriers holding the bag.
Read More →
Long-Awaited Canadian Border Bridge to Open in Detroit
For trucking, the bridge opening should offer immediate improvements in efficiency and reliability, with new customs facilities, expanded inspection capacity, and direct freeway-to-freeway connections.
Read More →
