US retail sales fell less than expected in February, but a sharp downward revision to January's sales could reignite concerns about the economy's growth prospects.
Today's weak report from the Commerce Department bucked the trend of recent labour market data that had suggested the economy remained on solid ground despite some concerns that a recession was looming.
US retail sales dipped 0.1% last month as car purchases fell and cheaper petrol undercut receipts at service stations.
January's retail sales were revised down to show a 0.4% decline instead of the previously reported 0.2% increase.
Retail sales, excluding car, petrol, building materials and food services were unchanged after a downwardly revised 0.2% increase in January.
These "core retail sales" correspond most closely with the consumer spending component of gross domestic product and were previously reported to have risen 0.6% in January.
Economists polled by Reuters had forecast retail sales slipping 0.2% and core retail sales rising 0.2% in February.
Last month's weak core retail sales reading, together with January's modest gain, suggest that consumer spending will probably remain tepid in the first quarter after growing at a 2% annualised rate in the fourth quarter.
The report came as Federal Reserve officials prepared to gather for a two-day policy meeting.
The Fed is expected to leave interest rates unchanged as policymakers monitor developments on global financial markets, domestic inflation and the labour market.
The Fed hiked its benchmark overnight interest rate in December for the first time in nearly a decade.
In a separate report, the Labor Department said its producer price index dropped 0.2% last month on lower energy and food costs, after edging up 0.1% in January.
With the dollar losing some momentum after gaining 20% against the currencies of the main trading partners of the US between June 2014 and December 2015, imported deflation is starting to wane. That could curb further declines in producer prices.
