US retail sales rose a less-than-expected 0.1 per cent in February amid cold weather in the northeast and despite firm automotive sales, government data showed today.
Excluding the car-making sector, February retail sales fell 0.1 per cent, the Commerce Department said.
Treasuries extended their gains on the weaker-than-expected reading of retail spending last month, and the dollar fell on the news of anaemic retail sales in the $13 trillion economy.
Analysts were expecting a 0.3 per cent gain in both overall retail sales and sales excluding the automotive sector - considered a more reliable gauge of household spending.
The US Federal Reserve meets next week to set monetary policy but is widely expected to leave its key Fed funds rate unchanged with market debate on whether it will cut or not focused on June's meeting.
The latest retail sales report provided further evidence of the sluggish growth US policy-makers have been forecasting for the first half of this year.