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.

The United States is going to ban Russian and Chinese software in vehicles, according to the Department of Commerce, due to national security concerns.

The final rule, posted on the federal register Tuesday morning, comes after the Commerce Department's Bureau of Industry and Security previewed the rule months ago.

During the rulemaking process, the Bureau of Industry and Security found that certain technologies originating from China or Russia present an undue and unacceptable risk to U.S. national security.

The Biden administration is poised to open up a new front in its effort to safeguard U.S. AI from China with preliminary plans to place guardrails around the most advanced AI Models, the core software of artificial intelligence systems like ChatGPT, sources said.

The Commerce Department is considering a new regulatory push to restrict the export of proprietary or closed source AI models, whose software and the data it is trained on are kept under wraps, three people familiar with the matter said.

The Biden administration launched an investigation Thursday into internet-connected “smart cars” from China to determine if they can be used to spy on American drivers.

The probe could result in new regulations aimed at limiting the use of certain technologies in connected cars that track drivers and their personal information, such as driver assistance technology.

WASHINGTON, Feb 29 (Reuters) - The United States is opening an investigation into whether Chinese vehicle imports pose national security risks and could impose restrictions due to concerns about "connected" car technology, the White House said on Thursday.

The U.S. Commerce Department probe is needed because vehicles "collect large amounts of sensitive data on their drivers and passengers (and) regularly use their cameras and sensors to record detailed information on U.S. infrastructure," the White House said.

American President Joe Biden has accused China of using “unfair practices” to undercut legacy vehicle manufacturers, citing national security risks.

In a White House briefing earlier today, President Biden addressed China and the impact the nation was having on the automotive industry in the United States.

He unveiled “unprecedented actions” to ensure that cars on US roads from countries of concern, including China, do not undermine national security.

Biden has directed the Secretary of Commerce Gina Raimondo to conduct an investigation into connected vehicles.

President Biden took steps on Thursday toward blocking internet-connected Chinese cars and trucks from entry to the American auto market, including electric vehicles, saying they posed risks to national security because their operating systems could send sensitive information to Beijing.

The immediate action was the opening of a Commerce Department investigation into security threats, which could lead to new regulations or restrictions on Chinese vehicles.

Commerce Secretary Gina Raimondo is among the most sought-after meetings for a key corporate gathering in Washington next week, in hopes that she can help U.S. business leaders navigate the increasingly treacherous straits between America and China.