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.

Consumer spending in January was down from the robust pace in December but still posted a 5.44% gain when compared with January 2024, according to the National Retail Federation

U.S. retail sales fell more than expected in January, likely as frigid temperatures kept consumers from automobile showrooms. Retail sales dropped 0.9% last month after an upwardly revised 0.7% increase in December,