By Lucia Mutikani
February 14, 2025 – 6:58 AM PST
Advertisement
WASHINGTON (Reuters) – 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.
The larger-than-expected decline in retail sales reported by the Commerce Department on Friday was across the board. Economists speculated that rising prices and uncertain economic outlook amid confusion over tariffs on imports were forcing consumers to tighten their purse strings.
Pre-emptive buying in anticipation of tariffs that would raise prices for goods helped to boost retail sales in recent months. But consumer sentiment has deteriorated, with one-year inflation expectations hitting a…
