WASHINGTON -- Sales at the nation's retailers barely budged in February as bad winter weather kept already cautious shoppers away from the malls.
The Commerce Department report, released yesterday, raised fresh concern that consumers could further tighten their belts, causing economic growth to slow even more than anticipated.
Retail sales edged up only 0.
1 percent in February. Sales were flat in January as shoppers took a breather after buying briskly during the holidays.
Shoppers in February cut spending on a wide range of goods, including home furnishings, building and garden supplies, clothing, electronics and appliances, sporting goods, books, and music.
They also ate out less.
A bright spot was auto sales, which rose 0.9 percent in February, following a decrease of the same size in January.
On Wall Street, stocks tumbled as the weak retail sales report and troubles with risky mortgages added to investors' fears about the country's economic health. The Dow Jones industrial average plunged 242.66 points, its second-biggest drop of the year.
The latest retail sales figures were weaker than economists were forecasting. They expected sales would go up by 0.3 percent.
Excluding auto sales, which can swing widely from month to month, sales at all other merchants in February actually fell 0.1 percent, the worst performance since October. Economists were predicting a better showing -- a 0.
3 percent rise -- in this category in February.
The economy has been going through a spell of sluggish growth, reflecting the strain from the housing slump and the ailing auto industry. So far, consumers have been spending sufficiently to keep the economy growing.
But consumers could clamp down if the housing slump worsens and that could be for the economy. Gas prices, meanwhile, are on the rise. A jump in energy prices also could be jarring to consumers and the overall economy.
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