The numbers: Retail sales fell in January by the most in almost two years after consumers took a breather from holiday shopping season and a severe cold snap in the U.S. kept people indoors.

Sales at U.S. retailers sank 0.9% in January, the government said Friday. Economists polled by the Wall Street Journal had forecast a 0.2% decline.

January is often a tough month for retailers. Americans tend to reduce spending to pay off credit cards after holiday purchases, for one thing. Sales rose sharply from September to December in what turned out to be a strong holiday shopping season.

Severe winter weather can also weighs on sales, and that’s what happened in January. Harsh temperatures blanketed much of the U.S. last month.

Retail sales represent about one-third of all consumer spending and offer clues on the health of the economy. In 2024, retail sales rose a solid 4.4%.

Big picture: The U.S. economy grew rapidly in 2024 despite high interest rates and lingering inflation and by most measures it’s gotten off to a decent start in the new year.

The path forward has gotten cloudier, though.

President Trump has vowed to boost the economy by tax cuts and regulations, but his threat to raise tariffs has worked to temper the optimism among businesses.

Lingering inflation, meanwhile, is keeping interest rates high and putting more financial strain on middle- and lower-income families.

Market reaction: The Dow Jones Industrial Average and S&P 500 were set to open slightly lower in Friday trading.