U.S. retail sales surged 4.8% year-over-year in January, rising to $668 billion, setting the stage for unexpectedly strong retail growth in 2025.

With consumer spending making up two-thirds of economic activity in the U.S., the sales numbers indicate potentially weaker growth for the first quarter.

U.S. retail sales dropped by the most in nearly two years in January, likely because of frigid temperatures and moderation following hefty gains in the past four months, suggesting a sharp slowdown in economic growth early in the first quarter.