U.S. retail sales dropped by the most in nearly two years in January, likely weighed down by frigid temperatures, wildfires and motor vehicle shortages, suggesting a sharp slowdown in economic growth early in the first quarter.

New data out Friday showed retail sales declined more than expected in the first month of 2025. Headline retail sales fell 0.9% in January, more than the 0.2% decline economists had expected, according to Bloomberg data.

U.S. retail sales fell more than expected in January, dropping a seasonally adjusted 0.9% from December to $723.9 billion, the Commerce Department said. Economists surveyed by The Wall Street Journal had expected a drop of 0.