U.S. retail sales tumbled sharply lower in January, snapping a five-month winning streak, as extreme weather, California fires and surging inflation trigged a consumer spending hangover following December's solid gains.

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.

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.