Surprise decline in retail sales
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WASHINGTON — U.S. consumers cut spending in February and the labor market continued to weaken, suggesting the household-spending pillar that had supported the economy’s expansion might be giving way.
Retail sales unexpectedly declined 0.6% last month, and the ranks of workers remaining on state unemployment benefit rolls hit the highest level in nearly 2 1/2 years in late February, government data showed.
Now the credit crunch is settling in on Main Street.
Consumers, who fuel roughly two-thirds of economic growth, held back spending amid surging food and energy costs and a decline in wealth as their home values tumbled.
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Bloomberg News was used in compiling this report.
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