Sales at U.S. retailers fell sharply in January and the final two months of 2013 turned out weaker than initially reported, offering more evidence the economy may have softened toward the end of the year.
Sales tumbled a seasonally adjusted 0.4% last month, the Commerce Department said Thursday. Economists polled by MarketWatch had expected a 0.1% drop.
What’s more, an originally reported increase in sales in December was wiped out to show a small decline. The increase in sales in November was also trimmed a notch.
Some economists quickly cut their forecasts for first-quarter growth and said gross domestic product in the fourth quarter is likely to be revised sharply lower from the government’s original reading of 3.2%. Growth in the final three months could be trimmed to 2.4% or less.
In Thursday action, U.S. stock markets retreated after the poor showing in retail sales and a separate report showing an 8,000 increase in initial jobless claims.
Sales tumbled a seasonally adjusted 0.4% last month, the Commerce Department said Thursday. Economists polled by MarketWatch had expected a 0.1% drop.
What’s more, an originally reported increase in sales in December was wiped out to show a small decline. The increase in sales in November was also trimmed a notch.
Some economists quickly cut their forecasts for first-quarter growth and said gross domestic product in the fourth quarter is likely to be revised sharply lower from the government’s original reading of 3.2%. Growth in the final three months could be trimmed to 2.4% or less.
In Thursday action, U.S. stock markets retreated after the poor showing in retail sales and a separate report showing an 8,000 increase in initial jobless claims.