WASHINGTON (AP) – U.S. retail sales fell last month as Americans cut back on their car purchases, the latest sign that consumers are reluctant to spend freely.
Sales at retail stores and restaurants fell by a seasonally adjusted 0.3 percent in March, the Commerce Department said Wednesday, following a flat reading in February and a drop in January.
Americans have been more cautious about spending this year than most economists expected, despite steady job gains and lower gas prices. That’s a key reason why analysts now think the economy barely expanded in the first quarter.
March’s decline was largely driven by a sharp drop in auto sales, which plunged 2.1 percent. That was the steepest fall in more than a year. Sales at restaurants and clothing stores also retreated.
Car purchases have slowed this year after reaching record levels in 2015.