US retail sales were down -0.9% MoM in January, a big miss from -0.1% MoM expected and well below the 0.7% MoM increase in December (revised up from 0.4% MoM).

• Excluding gas and motor vehicle sales, retail sales were down -0.5% MoM.
• Motor vehicle sales weighed heavily, down -2.8% MoM.
• The strongest categories were gas sales, up 0.9% MoM on higher prices, and food services & drinking, up 0.9% MoM despite cold weather during the month.
• Most retail goods segments had a weak month with large declines in furniture (-1.7% MoM), building material & supplies (-1.3% MoM), clothing (-1.2% MoM), and sporting goods & hobbies (-4.6% MoM).
• Nonstore retail also saw a weak month, down -1.9% MoM.
• Many of the goods declines followed strong increases in December suggesting there was a larger-than-usual hangover following the holiday retail season.