U.S. retail sales dropped sharply last month, in part because cold weather kept more Americans indoors and dented sales at car dealers and most other stores.

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%.

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 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.

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.

US retail sales plunged by the most in almost two years in January -- a bigger drop than forecast and one that follows an unexpected uptick in inflation that President

Retail sales fell 0.9% in January, the steepest drop in nearly two years, as consumers were held back by California wildfires, unusually frigid conditions, and uncertainty around the outlook for tariffs.

The US economy faced a dual setback in January, with both retail sales and manufacturing output recording declines. Retail sales posted their largest drop in nearly two years, while manufacturing production unexpectedly contracted,