US Retail Sales Decline, Job Cuts in January 2026

American consumers pulled back their spending in January 2026, extending a retail sales malaise that began late last year. Retail sales fell 0.2% in January, with significant declines in health and personal health stores, gas stations, and clothing stores. Some categories like home furnishings and building materials saw gains. This report from the United States===United States Department of Commerce was delayed due to a government shutdown. Major retailers like Walmart, Target Corporation, and Home Depot reported mixed fiscal fourth-quarter results. The job market in the United States is also under strain, with the United States===United States Department of Labor reporting 92,000 job cuts and an unemployment rate of 4.4%. Uncertainty around tariffs, some of which were struck down by the United States===Supreme Court of the United States but replaced by Donald Trump, further complicates the economic outlook.