based, suggesting that snowy and cold weather across the country in the second half of February likely was a factor. It was the first time since 2012 that retail sales had declined for three consecutive months. Automobile sales fell 2.5 percent in February, the biggest decline in more than a year. Sales at building-material and garden-equipment stores fell 2.3 percent, and sales at restaurants declined 0.6 percent. Sales at gasoline stations rose for the first time in 9 months. Excluding the volatile categories of autos, gasoline, building materials, and restaurants, so-called "core" retail sales were flat. Strong hiring in the past 12 months and lower gasoline prices lifted consumer confidence in January and February to its highest levels since the Great Recession. But the trends have not yet increased consumer spending this year. The retail-sales report is closely watched because it provides the first indication each month on consumer spending, which accounts for 70 percent of U.S. economic activity. Retail sales account for about one-third of consumer spending, with services accounting for most of the remainder.
