US retail sales contracted in March for the second time in three months, a sign the American economy may have stumbled at the end of the first quarter.
Commerce Department data showed sales fell 0.4% in March, below analysts' expectations that sales would be flat.
The data suggests consumer spending was considerably weaker in the first quarter than analysts previously believed, and many cut economic growth forecasts for the period.
Previous reports had made consumers look relatively resilient despite an increase in tax rates in January on most Americans.
Readings for sales have been volatile this year, making it difficult to know how much of the recent weakness has been due to higher taxes and how much might be because of temporary factors related to the weather, Reuters reports.
Supporting the view that tighter fiscal policy is the culprit, core sales - a closely watched gauge of consumer spending - unexpectedly fell in March and the government revised the readings for January and February sharply lower.