Official figures show that US retail sales fell by 0.6% in February from January, mainly due to weak car sales.
The Commerce Department said retail sales dipped 0.2% when car sales were stripped out.
Economists had expected a 0.2% fall in both measures. The February sales decline followed an overall 0.3% gain in January.
The dismal data left Wall Street analysts all but certain the Federal Reserve will reduce interest rates sharply again next week.
