Retail sales in the United States fell more than expected in March, as consumers cut back on their purchases of cars and other expensive products, in a sign that the economy slowed at the end of the first quarter due to higher interest rates.
And given the weak labor market, the decline in retail sales is likely to continue.
Separate data on Friday showed factory output fell last month.
But the US Federal Reserve is poised to raise interest rates once more in May before an expected pause in June of the bank’s fastest tightening cycle since the 1980s.
The Commerce Department said retail sales fell 1 percent last month.
Data for February was revised to show retail sales fell 0.2 percent instead of 0.4 percent.
Economists polled by Archyde.com had expected sales to fall 0.4 percent.
It increased by 2.9 percent year-on-year in March.
A separate report indicated that US factory production fell 0.5% in March following increasing 0.6% in February.
Auto production fell 1.5 percent.
