With consumer spending making up two-thirds of economic activity in the U.S., the sales numbers indicate potentially weaker growth for the first quarter.

Retail and food sales made their largest monthly drop in January since March 2023, marking an end to the buying surge that took off in the run-up to the 2024 election. Sales fell by 0.9 percent to

U.S. retail sales dropped by the most in nearly two years in January, likely because of frigid temperatures and moderation following hefty gains in the past four months, suggesting a sharp slowdown in economic growth early in the first quarter.