According to the latest report from the Commerce Department on Monday, retail sales in the US increased by a modest 0.2% in February, following a notable 1.2% decline in January. The rise was mainly driven by increased sales at grocery stores, home and garden stores, and online retailers, while sales decreased at auto dealers, restaurants, and electronics stores.

The slight uptick in spending indicates that consumers are becoming more cautious with their finances, likely due to economic uncertainties arising from factors such as stock market fluctuations, President Trump's tariff threats, and government spending cuts. This growing wariness is reflected in the recent sharp decline in consumer sentiment for the third consecutive month, with policy uncertainties cited as a major contributor to the pessimistic outlook.

The University of Michigan's survey showed that respondents, irrespective of their political affiliation, are increasingly concerned about the current economic climate. While Republicans showed slightly higher confidence in the current economy compared to Democrats, there was a notable 10% drop in Republicans' outlook on the economy's future.