US consumer spending showed unexpectedly strong performance in February, just before the outbreak of war between the US-Israel alliance and Iran.
The US Department of Commerce said Saturday that February retail sales totaled $738.4 billion (approximately 1,113 trillion won), up 0.6% from the previous month.
The increase exceeded the 0.5% growth forecast by experts surveyed by Dow Jones. Retail sales had declined 0.1% month-on-month in January (on a revised basis) due to winter storms, cold snaps, and other adverse weather conditions. The strong February retail sales figures suggest that US consumer spending was maintaining solid growth just before the Middle East war broke out on February 28.
Wall Street analysts believe early-year income tax refunds helped boost consumption, particularly among lower-income households. The monthly retail sales indicator is considered a flash estimate that primarily tracks goods sales within overall consumption, serving as a gauge for shifts in consumer spending — the backbone of the US economy.