Retail sales in the U.S. unexpectedly fell in February as Americans faced rising energy bills and a faltering labor market, signaling the economic slump is worsening.
Purchases dropped 0.6 percent last month, led by declines at auto dealers and restaurants, after a 0.4 percent gain in January, the Commerce Department said. Purchases excluding autos declined 0.2 percent.
The biggest job losses in five years and record fuel costs are eroding consumer confidence and spending, which accounts for more than two thirds of the economy. The report may prompt more economists to join a growing number that includes Lehman Brothers Holdings Inc. and JPMorgan Chase & Co. predicting a recession is at hand as Americans cut back.
``The combination of slower job growth, tighter credit conditions and lower home values continue to weigh heavily on the consumer,'' John Silvia, chief economist at Wachovia Corp. in Charlotte, North Carolina, said before the report. ``Economic activity stalled out in the first quarter.''
A Bloomberg survey of 79 economists forecast total retail sales would rise 0.2 percent, following an originally reported 0.3 percent gain the prior month. Sales excluding autos were also forecast to rise 0.2 percent.
Today's report showed sales at automobile dealerships and parts stores fell 1.9 percent, the most since June.
Industry figures earlier this month showed cars and light trucks sold at an annual pace of 15.3 million vehicles in February, little changed from a three-year low of 15.2 million reached in January.
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