Retail sales fell 1.6 percent in February, the largest monthly drop since November 2001, according to the U.S. Commerce Department.
The drop was roughly three times the 0.5 percent decline economists had expected and came after a revised 0.3 percent increase in January.
The Commerce Department said that retail sales, excluding volatile automobile sales, fell 1 percent last month, the largest drop since the attacks of September 2001. Sales totaled $304 billion, and without autos, $232.5 billion. Both results were below forecasts.
Snowstorms, terrorism concerns and a bleak job market were blamed for curbing Americans' interest in buying furniture and cars.
Initial claims for jobless benefits have remained above the 400,000 level since the week of Feb. 14, 2003, the U.S. Labor Department said today. States received 420,000 applications for benefits in the week ended Saturday, March 8, 2003. That was down from the previous week's 435,000, which was the highest since mid-December. The number of workers continuing to receive jobless benefits rose 14,000, to 3.496 million, in the week ended March 1, 2003, the highest since mid-November.