With consumer spending making up two-thirds of economic activity in the U.S., the sales numbers indicate potentially weaker growth for the first quarter.

U.S. retail sales dropped by the most in nearly two years in January, likely because of frigid temperatures and moderation following hefty gains in the past four months, suggesting a sharp slowdown in economic growth early in the first quarter.

In addition to cold weather, the sales decline could in part point to fading consumer confidence as was reflected in a pair of recent surveys by the Conference Board and Universit

Retail sales dropped 0.9% in January from the previous month, the Commerce Department said, after two months of healthy gains. January's average temperature was the lowest since 1988, according to Pantheon Macroeconomics,