Paradigm Blog U.S. Retail Sales Unexpectedly Fall the Most in Nine Years

In a sign of slower economic momentum, U.S. retail sales fell 1.2 percent in December compared to January amid  financial market turmoil and the government shutdown. It was the worst drop in nine years and missed all economist estimates in a Bloomberg survey that had called for a 0.1 percent gain. Stock futures erased gains, Treasuries rose and the dollar fell, as the broad weakness across most sectors added to signs that U.S. economic growth is cooling from prior quarters -- potentially by more than projected. It may reinforce investor expectations that the Federal Reserve will hold off on raising interest rates this year amid concern about trade and global growth.