U.S. Retail Sales Drop 0.2% in January

U.S. retail sales dropped unexpectedly by 0.2 percent in January, marking the largest decline since May and extending a period of sluggish consumer spending into the new year. The Commerce Department released the figures on Friday, after a delay caused by the previous year's government shutdown. The data, adjusted for seasonal variations but not inflation, fell short of economists' expectations for a flat reading.

The downturn came amid low consumer confidence and severe cold weather that affected much of the country, discouraging shoppers from venturing out. Sales weakened across most categories, with department stores seeing the sharpest drop at 6 percent, followed by health and personal care stores at 3 percent, gasoline stations at 2.9 percent, and clothing stores at 1.7 percent. These declines highlight broader caution among consumers, who account for roughly two-thirds of the nation's economic activity.

Not all sectors fared poorly. Sales of furniture and home furnishings rose 0.7 percent, while building materials, including landscaping and gardening supplies, increased by 0.6 percent. A key underlying measure, known as the retail sales control group, which excludes...