U.S. retail sales dropped by the most in nearly two years in January, likely weighed down by frigid temperatures, wildfires and motor vehicle shortages, suggesting a sharp slowdown in economic growth early in the first quarter.

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.

Retail expert Rich Hollander sits down with FOX 10's Ellen McNamara and explains why retail spending is down .9% in January and if it is a sign of an incoming recession.

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.

U.S. retail sales fell more than expected in January, dropping a seasonally adjusted 0.9% from December to $723.9 billion, the Commerce Department said. Economists surveyed by The Wall Street Journal had expected a drop of 0.

Retail sales — a grand total of how much consumers spent in this economy — fell 0.9% from December to January. What happened?

U.S. retail sales slumped in January by the most in nearly two years, indicating an abrupt pullback by consumers after a spending spree in 2024.

The advance report for retail sales plummeted by 0.9 percent for January, offset only modestly by upward revisions to prior months. Read more here.

According to a Friday U.S. Census Bureau report, retail sales for January were down 0.9% from the December. But total sales for November 2024 - January 2025 were up 4.2%.

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.