WASHINGTON, Feb. 14 (Xinhua) -- U.S. retail sales dropped unexpectedly in January, indicating consumer spending may cool down in the first quarter.
The consumer spending dropped 0.3 percent from the previous month to 492 billion U.S. dollars in January, the largest decline in 11 months, said the Commerce Department on Wednesday.
Excluding motor vehicle and parts, retail sales were unchanged in January. Vehicle and auto parts sales dropped 1.3 percent in the month, following a 0.1 percent decline in December.
The soft reading suggested that consumer spending, accounting for over two thirds of the economy, might start with a weak momentum this year.
However, Federal Reserve officials expected that consumer spending would remain stable growth this year on the expectation that job market will continue to tighten and wage growth will begin to accelerate.
