U.S. consumers put a lid on their spending to kick off 2025, potentially indicating weaker economic growth prospects.

According to Census Bureau data, retail sales tumbled by 0.9 percent in January after increasing by 0.7 percent in December 2024.

The consensus forecast suggested a 0.1 percent drop.

Last month’s decline was the sharpest drop since March 2023, and market watchers attributed the lackluster consumer spending to harsh winter weather...

U.S. retail sales dropped by the most in nearly two years in January, likely weighed down by frigid temperatures, wildfires and motor vehicle shortages, suggesting a sharp slowdown in economic growth early in the first quarter.

But the larger-than-expected and across the board decline in retail sales reported by the Commerce Department on Friday probably does not reflect a material shift in consumer spending as it also followed four straight months of hefty increases...

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.