Retail sales south of the border fell less than expected in February, but a sharp downward revision to January's sales could reignite concerns about the economy's growth prospects.
The U.S. Commerce Department said on Tuesday retail sales dipped 0.1% last month as automobile purchases slowed and cheaper gasoline undercut receipts at service stations.
January's sales were revised to show a 0.4% decline instead of the previously reported 0.2% increase. Economists had foreseen retail sales slipping 0.2% in February.
Retail sales excluding automobiles, gasoline, building materials and food services were unchanged after a downwardly revised 0.2% increase in January. These so-called 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.
Last month's weak reading, together with January's modest gain, suggest that consumer spending will probably remain tepid in the first quarter after growing at a 2% annualized rate in the fourth quarter.
A 4.4% drop in the value of sales at service stations weighed on retail sales last month. The U.S. Energy Information Administration says gasoline prices dropped 9% last month, as oil prices fell further.
Retail sales were also hurt by a 0.2% fall in sales at auto dealerships. Auto sales declined 0.2% in January.
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