Retail sales fell sharply in January

Retail sales fell sharply in January on lower gasoline prices and a drop-off in auto sales.

Sales declined 0.8% after sliding 0.9% the previous month, substantially more than the 0.4% economists expected, the Commerce Department said Thursday. Excluding volatile autos, sales fell 0.9%. Economists expected a 0.5% decrease.

"Core" sales, which exclude autos and gasoline, rose 0.2%. Economists expected a 0.4% increase.

Gasoline prices are down about 40% since June, leaving consumers a windfall that has helped support consumer spending despite sluggish wage growth. Still, several recent surveys have shown Americans are banking a surprisingly large share of their pump savings or using it to pay down debt.

Last month, tumbling prices pushed down gasoline sales by 9.3%. And autos fell 0.5%.

Other types of consumer purchases were mixed. Sales rose 0.8% at restaurants and bars and 0.3% at electronics and appliance stores.

But sales fell 0.8% at clothing stores, 0.7% at department stores and 0.7% at furniture stores.