Surprise fall as consumers rein in spending
US retail sales dropped in February as consumers spent less on cars, clothes and furniture because of cold weather, said the US government.

Sales fell 1.3 per cent after jumping 2.9 per cent in January, the US Department of Commerce said yesterday.

The data indicated that US consumers, who have been the main driver of the world's largest economy, have become more reluctant to spend in the new year.

A downturn had been anticipated by Wall Street analysts, but the US Department of Commerce figures are more severe than expected.

However, analysts were in general consensus that the US remains well-placed to keep expanding, despite increasing concerns over the wellbeing of the US economy.

The current account deficit, the widest measure of trade, surged to a record last year, while unemployment is proving difficult to bring down.

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