Total retail sales fell 0.2% during February (+2.2% y/y) following a 0.7% January increase, revised from 0.2%. A 0.2% gain had been expected in the Action Economics Forecast Survey. Retail sales excluding motor vehicles and parts declined 0.4% (+2.2% y/y) after a 1.4% increase, revised from 0.9%. A 0.3% rise had been expected.

A measure of the underlying pace of retail spending is nonauto sales growth excluding gasoline and building materials. These sales fell 0.2% in February (+2.9% y/y) following a 1.7% January rise, revised from 1.1%.

A 4.4% decline (+1.4% y/y) in sales of building materials and garden equipment held back overall retail sales in February as it reversed the prior month's increase. Electronic & appliance store sales also were weak and fell 1.3% (-3.1% y/y), down for five months in the last six. Furniture & home furnishings store sales were off 0.9% (-2.7% y/y) and have fallen 4.2% since their peak last April. Apparel store sales fell 0.4% (+0.8% y/y), down for the third straight month. General merchandise store sales fell 0.3% (1.2% y/y), led by a 0.5% decline (-4.0% y/y) in department store sales, the third straight monthly decline.

Offsetting these declines was a 0.9% rise (10.0% y/y) in nonstore retail sales. That followed a 4.5% recovery from a like-sized decline in December. Motor vehicle sales in dollar terms improved 0.7% (2.4% y/y), though unit motor vehicle purchases eased 0.8%. Also rising by 0.5% (-8.8% y/y) were sporting goods, hobby, book & music store sales, but these sales have been declining since mid-2016.

In the nondiscretionary retail spending categories, food & beverage store sales declined 1.2% (+1.9% y/y) following a 1.4% rise. Health & personal care store sales increased 0.6% (5.9% y/y) after a 2.4% gain.

Food service & drinking establishment sales inched 0.1% higher (3.6% y/y), but have fallen slightly over the last six months.

The retail sales data can be found in Haver's USECON database. The Action Economics forecast is in the AS1REPNA database.