Previously rampant US consumer spending cooled as the new year began with retail sales climbing just 0.3 per cent last month, well below analysts' expectations of a 0.6 per cent increase.
A fall-off in demand for non-durable goods, such as food and pharmaceuticals, dragged overall sales lower. Excluding cars, retail sales fell 0.3 per cent, undershooting analysts' forecasts of a 0.6 per cent gain.
Offsetting January's weakness, the pace of sales in the two prior months was revised up.
December retail sales were revised to up 1.7 per cent, from the previously reported 1.2 per cent increase. Minus cars, December retail sales were revised up to 1.9 per cent, compared with the initially reported 1.4 per cent rise.
November sales were revised to up 1.3 per cent from up 1.1 per cent, and sales excluding cars were revised to up 0.9 per cent from up 0.7 per cent.
The relative weakness of last month's data when compared with those of preceding months may cheer the Federal Reserve.