Retail sales came in weaker than expected, another bad sign for the US economy

Spending at US retailers last month was much weaker than expected, in a troubling sign that the American shopper could be starting to tap out.

Retail sales rose 0.2% in February from the prior month, the Commerce Department said Monday, up from January’s downwardly revised 1.2% decline. That was much lower than the 0.7% increase economists projected in a FactSet poll. The figures are adjusted for seasonal swings but not inflation.

President Donald Trump’s whipsawing trade spat with America’s biggest trading partners has spurred high levels of uncertainty among consumers and businesses. That skittishness has been evident across many consumer surveys and now shoppers seem to be adjusting their purchasing behavior accordingly. Retail sales account for about a third of overall spending in the US.

Weak consumer spending figures are adding to concerns that the US economy is slowing, and perhaps heading into a recession. Monday’s retail report didn’t ease those fears.

Spending last month declined the most at department stores (-1.7%), restaurants and bars (-1.5%) and at gasoline stations (-1%). Meanwhile, sales were up online and at health stores, rising 2.4% and 1.7%, respectively.