Source: US Census Bureau/HaverAnalytics

Source: US Census Bureau/Haver Analytics

According to the US Census Bureau, US retail sales declined by 0.1% month over month in February on a seasonally adjusted basis, representing a three-month decline. The 0.1% decline came as a surprise to economists who had expected a 0.3% increase in sales. The decline was mostly driven by lower sales volume at car dealerships, and sales from gas stations. Excluding sales from auto dealers, gas stations, building materials and food services, retail sales edged up 0.1%. Despite the decline, economists remain confident in consumer spending, citing the recent tax cut, strong housing market and healthy labor market as drivers. On a year-over-year basis in February, total retail sales increased by 4.0% and retail sales excluding autos increased by 4.4%. Seven out of 13 major store categories posted negative sales results compared with January.Sales at auto dealers and gas stations posted the biggest decline.