Consumers sharply curtailed their spending in January, indicating a potential weakening in economic growth ahead, according to a Commerce Department report Friday.

New data out Friday showed retail sales declined more than expected in the first month of 2025. Headline retail sales fell 0.9% in January, more than the 0.2% decline economists had expected, according to Bloomberg data.

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.