American consumers pulled back their spending to start 2026, extending the malaise in retail sales that began late last year.

Retail sales fell 0.2% in January following a flat reading in December. January’s figure came in below the forecasts of economists, who were expecting another flat reading, according to the Commerce Department’s report issued on Friday. The report was delayed because of the 43-day government shutdown.

Sales at health and personal health stores were among the worst performers, falling 3% from December. Gas stations saw declines in receipts of 2.9% and sales at clothing stores fell 1.7% from December.

Among the categories that saw gains were home furnishings and building materials, which includes landscape and gardening supplies. Sales at furniture and home furnishing stores rose 0.7%, while building materials sales rose 0.6%.

The snapshot offers only a partial look at consumer spending and doesn’t include many services, including travel and hotel lodges. But the lone services category – restaurants – registered a dip of 0.2%.

The retail sales report comes as major retailers in recent weeks have reported their fiscal fourth-quarter reports, and so the results have been a mixed bag.

Walmart Inc. delivered another impressive quarter as lower prices and speedy deliveries attracted Americans ranging from cash-strapped to wealthier households. But rival Target reported earlier this week another quarterly decline in profits and sales during the critical holiday period as the discounter struggles with its own merchandising missteps and confronts a consumer who is focusing more on essentials.

Meanwhile, Home Depot’s fourth-quarter performance was tempered by ongoing caution from American consumers in a weak housing market, but the home improvement retailer’s results topped Wall Street expectations.

Retailers are confronting a shifting tariff landscape, making it hard for retailers to make decisions on hiring and merchandise orders.

The Supreme Court struck down the biggest and boldest of Trump’s tariffs – though President Donald Trump is replacing them with new ones. The job market remains under strain as uncertainty around tariffs and the economy have made employers cautious about hiring.

American employers unexpectedly cut 92,000 jobs last month, according to the Labor Department’s report on Friday. The unemployment rate moved up to 4.4%. Hiring deteriorated from January, when companies, nonprofits and government agencies added a healthy 126,000 jobs. Economists had anticipated 60,000 new jobs in February.