US retail spending plunged last month, falling for the first time since August

American shoppers pulled back on their spending last month for the first time since August as high inflation continued to bite.

Retail sales plunged 0.9% in January from the prior month, the Commerce Department said Friday. That’s below December’s upwardly revised 0.7% gain and well below economists’ expectations of a 0.4% decline. The figures are adjusted for seasonal swings but not inflation.

Shoppers reined in their spending across multiple categories last month, declining the most at specialty stores and auto dealers.

Sales at retailers and food establishments account for about a third of overall spending in the US.

This is a developing story and will be updated.