Last month, Americans' spending increased tepidly as economic anxiety set in.

After a steep decline the month before, U.S. consumers increased their spending somewhat in February, indicating that they are becoming more frugal shoppers as worries about the state of the economy grow.

Following a steep 1.2% decline in January, retail sales increased just 0.2% in February, according to a Commerce Department report released Monday. Grocery businesses, home and garden stores, and internet merchants saw an increase in sales. Electronics stores, restaurants, and car dealerships saw a decline in sales.

Given that the stock market has crashed and that President Donald Trump’s tariff threats and government spending cuts have caused widespread concern among businesses and consumers, the slight uptick raises the possibility that Americans are becoming more frugal with their spending.

The fact that the numbers were not worse pleased some economists. However, experts predict that consumer spending will only increase by 1% to 1.5% annually in the first three months of this year, which is significantly less than the 4.2% increase in the last quarter of last year.

In an email, Stephen Brown, an economist at the consulting firm Capital Economics, stated that consumer spending is expected to decline somewhat this quarter, but not as much as we had initially anticipated.

A gauge of consumer morale dropped precipitously on Friday for the third consecutive month, and it has now dropped more than 20% since December. One of the main causes of the more pessimistic perspective, according to poll participants from the University of Michigan, was policy uncertainty. Although there was a significant party split among the respondents, Republicans’ confidence in the economy’s future fell by 10%, while their mood regarding the existing economy declined by a significantly smaller amount than that of Democrats.

Journalist and lawyer Hunter Simmons of Austin, Texas, stated that he has been more frugal with his expenditures due to the economic uncertainties caused by the stock market turbulence and tariffs. He claimed he used to purchase the more costly farm-fresh eggs, but these days he looks for the least expensive eggs available. Additionally, he has begun purchasing frozen fruits and vegetables instead of fresh ones. Additionally, Simmons is now participating in fuel rewards programs and paying for petrol with cash.

He stated, “I have been making small cuts, but I am not a big spender in general.”

A slowdown in spending has been mentioned in a number of earnings reports from large retailers, including Walmart, Macy’s, and Dollar General, over the past several weeks.

Last month, Walmart, the biggest retailer in the US and a key indicator of the retail industry, issued a bleak prognosis due to tariff uncertainty.

Gas stations, apparel retailers, and sporting goods stores saw a decline in February sales last month as well. Prices are not taken into consideration in these numbers, and the majority of the dip was probably caused by a decrease in gas prices in February. Retail sales, excluding gas and cars, increased by 0.5%, which is a better but still small number following a 0.8% decline in January.

The National Association of Homebuilders also reported on Monday that its builder sentiment index dropped three points to 39, the lowest level in seven months, as builders’ optimism dwindled due to economic uncertainties and fewer prospective buyers showed up for home inspections.

“Builder sentiment declined in March due to economic uncertainty, the threat of tariffs, and increased construction costs,” the association stated. According to the homebuilders, tariffs will raise the price of a new house by $9,200.

Macy’s claims that its financial projection for this month reflects the angst that its consumers are experiencing, including at its high-end stores Bloomingdale’s and Bluemercury.