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U.S. retail sales dropped sharply last month, in part because cold weather kept more Americans indoors, denting sales at car dealers and most other stores. Retail sales fell 0.9% in January from the previous month, the Commerce Department said, after two months of healthy gains. It was a much bigger drop than economists expected and the biggest decline in a year. The average temperature in January was the lowest since 1988, according to Pantheon Macroeconomics, and was particularly disruptive in the more temperate South. Devastating fires in Los Angeles may have also impacted spending. The data does not show that Americans rushed to buy goods in January to get ahead of President Donald Trump’s proposed tariffs, as some analysts had expected. However, sales were revised higher for December. Many consumers may have just cut back in January after splurging during the holiday season. The tail-off in sales may provide some measure of reassurance for the Federal Reserve, after a very hot read on inflation for January, that the economy may not be overheating. And he decline in retail sales indicates that the economy, while still expanding, will grow more slowly in the first three months of this year. It grew at a 2.3% annual rate in last year’s final quarter. Sales plummeted 2.8% last month at auto dealers and slumped at furniture stores, home and garden centers. Even in the usually strong online retail sector saw a 1.9% decline. Sales rose at general merchandise stores, a category that includes big retailers like Walmart and Target, and at restaurants and bars. In addition to cold weather, the sales decline could in part point to fading consumer confidence as was reflected in a pair of recent surveys by the Conference Board and University of Michigan. Still, hiring and wage growth have been steady, suggesting the economy is still expanding. Last week the government reported that the unemployment rate fell for the second straight month to a low 4%. Inflation did tick higher last month despite the Federal Reserve’s efforts to cool prices through higher interest rates. The cost of groceries jumped in January from the previous month, pushed higher by soaring egg prices. Rising costs at the grocery store is exacting a toll on Americans. At the same time Trump is also stepping up tariff threats, which could lead to higher prices. Trump said Thursday he would soon impose reciprocal tariffs on countries that levy large duties on U.S. goods exports. Trump has already added 10% import taxes on goods from China, and has said he will place 25% tariffs on all steel and aluminum imports. David French, executive vice president of the National Retail Federation, warned the import taxes could raise prices for consumers. While we support the presidents efforts to reduce trade barriers and imbalances, this scale of undertaking is massive and will be extremely disruptive to our supply chains,” French said Thursday. It will likely result in higher prices for hardworking American families and will erode household spending power. Retail executives say that its hard to plan given the fluidity of the tariff policies under the Trump administration. Kim Tobman, CEO of Bouqs, a floral retailer based in Marina del Ray, California, said most of her vases come from China, and that the 10% increase wasnt as bad as she expected. She doesnt expect to raise prices, but she is considering Vietnam, Indonesia and other areas to source vases. We feel at this moment we can absorb it, Tobman said. She experienced the turbulence that comes with Trumps shifting tariff plans last month during his showdown with Colombia, a massive exporter of flowers, after that nation initially refused to accept flights of deported migrants. Trump swiftly announced a series of retaliatory measures, including a 25% tariff on Colombia exports to the U.S., with a threat it could escalate. Colombia is the largest flower exporter to the U.S and represents a big chunk of sourcing for Bouqs floral arrangement, Tobman said. The Colombian government eventually agreed to Trumps demands, and the tariffs never materialized. By CHRISTOPHER RUGABER and ANNE D’INNOCENZIO AP Business Writers
Category:
E-Commerce
The Treasury Department’s Office of Inspector General on Friday said it was launching an audit of the security controls for the federal government’s payment system, after Democratic senators raised red flags about the access provided to Trump aide Elon Musk’s Department of Government Efficiency team. The audit will also review the past two years of the system’s transactions as it relates to Musk’s assertion of alleged fraudulent payments, according to a letter from Loren J. Sciurba, Treasurys deputy inspector general, that was obtained by The Associated Press. The audit marks part of the broader effort led by Democratic lawmakers and federal employee unions to provide transparency and accountability about DOGE’s activities under President Donald Trump’s Republican administration. The Musk team has pushed for access to the government’s computer systems and sought to remove tens of thousands of federal workers. We expect to begin our fieldwork immediately, Sciburba wrote. Given the breadth of this effort, the audit will likely not be completed until August; however, we recognize the danger that improper access or inadequate controls can pose to the integrity of sensitive payment systems. As such, if critical issues come to light before that time, we will issue interim updates and reports. Tech billionaire Musk, who continues to control Tesla, X and SpaceX among other companies, claims to be finding waste, fraud and abuse while providing savings to taxpayers, many of his claims so far unsubstantiated. But there is a risk that his team’s aggressive efforts could lead to the failure of government computer systems and enable Musk and his partners to profit off private information maintained by the government. Democratic Sens. Elizabeth Warren of Massachusetts and Ron Wyden of Oregon led the push for the inspector general office’s inquiry. On Wednesday, Warren, Wyden and Sen. Jack Reed, D-Rhode Island, sent a letter to Treasury Secretary Scott Bessent noting the inconsistencies in the accounts provided by his department about DOGE. Your lack of candor about these events is deeply troubling given the threats to the economy and the public from DOGEs meddling, and you need to provide a clear, complete, and public accounting of who accessed the systems, what they were doing, and why they were doing it, the Democratic lawmakers wrote in their letter. The Treasury Department provided conflicting information about DOGE’s access to the payment system. Initially, it claimed the access was read only, only to then acknowledge that a DOGE team member briefly had the ability to edit code, and then to say in an employee sworn statement that the ability to edit was granted by accident. The 25-year-old employee granted the access, Marko Elez, resigned this month after racist posts were discovered on one of his social media accounts, only for Musk to call for his rehiring with the backing of Trump and Vice President JD Vance. Advocacy groups and labor unions have filed lawsuits over DOGEs potential unauthorized access to sensitive Treasury payment systems, and five former treasury secretaries have sounded the alarm on the risks associated with Musks DOGE accessing sensitive Treasury Department payment systems and potentially stopping congressionally authorized payments. Earlier this week, the Treasury declined to brief a pair of the highest-ranking lawmakers on the Senate Finance Committee, including Wyden, on the ongoing controversy related to DOGE’s use of Treasury payment systems, citing ongoing litigation. By FATIMA HUSSEIN and JOSH BOAK Associated Press
Category:
E-Commerce
In a move on the petty-but-harmful bar of shutting down the White House Spanish-language page and the removal of words such as diversity and fairness from the FBI core values, the National Park Service (NPS) has erased references to transgender and queer people from the official website for the Stonewall National Monument due to a executive order issued by President Donald Trump. A two-gender nation? Last month, the president declared that the federal government will only recognize two gendersmale and female. Since then, federal agencies have been removing references to trans, queer, and intersex people from their pages, including those of the the NPS, which has erased references to transgender and queer people from its official website for Stonewall. LGBTQ+ is now also shortened to LGB on the NPS website. According to an archived version of the page posted by CNN, it had previously said “LGBTQ+.” The organization has not yet responded to our request for comment. Honoring brave pioneers The Stonewall National Monument Visitor Center opened June 28, 2024, marking the 55th anniversary of the of the Stonewall Rebellion, where LGBTQ+ activistsincluding trans peoplekicked off the modern fight for equality. A program of Pride Live, it was the first LGBTQIA+ visitor center in the National Park Service. In response to Trumps tactic, Pride Live and the visitor center published a statement on their websites denouncing the move: “Our space is inextricably linked with and honors the brave pioneers, especially transgender and gender-nonconforming individuals, who led the Stonewall Rebellion,” the statement read. “Independently owned and operated, and 100% supported by donations, we will continue our mission to ensure that every person has access to learn about and see themselves in history.” Erik Bottcher, a member of the New York City Council, told CNN: Hes trying to cleave our community apart and divide us. Hes not going to succeed. Lesbians and gays are not going abandon our transgender siblings. We are one community. Pride Live has made clear it will stand against the erasure of the existence and contributions of trans and queer people from the narrative: Through the creation of the Stonewall National Monument Visitor Center, were unwavering in our effort to protect and preserve Stonewalls legacy and history, the organization said. Government websites have been moving to erase references to transgender and nonbinary communities since Trump retook the White House. Last month, the U.S. State Department updated its page for queer travelers, which now says “LGB Travelers.”
Category:
E-Commerce
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