A report released by the Commerce Department on Thursday showed retail sales in the U.S. fell by much more than expected in the month of January.
The Commerce Department said retail sales slid by 0.8 percent in January after climbing by a downwardly revised 0.4 percent in December.
Economists had expected retail sales to edge down by 0.1 percent compared to the 0.6 percent increase originally reported for the previous month.
“Unusually nasty winter weather caused retail sales to fall more than expected,” said FHN Financial Chief Economist Chris Low. “Since we know weather was a factor, it is best to reserve judgment until we see February numbers, despite the magnitude of the January decline.”
The much bigger than expected decrease in retail sales was partly due to a steep drop in sales by motor vehicle and parts dealers, which tumbled by 1.7 percent in January after rising by 0.3 percent in December.
Excluding the slump in auto sales, however, retail sales still fell by 0.6 percent in January after rising by 0.4 percent in December. Ex-auto sales were expected to rise by 0.2 percent.
Sales by building material and garden equipment and supplies dealers showed a substantial decrease, plunging by 4.1 percent, while sales by miscellaneous store retailers dove by 3.0 percent.
The report also showed notable declines in sales by gas stations and health and personal care stores, while sales by furniture and home furnishings stores jumped.
Core retail sales, which exclude automobiles, gasoline, building materials and food services, fell by 0.4 percent in January following a 0.6 percent increase in December.
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