US retail sales increased by 0.2% in February. Economists surveyed by Reuters had anticipated a 0.6% rise, following a previously reported decline of 0.9% in January. On an annualized basis, the figure surged by 3.1%.
A Commerce Department report released on Monday indicated that the economy is growing, albeit at a moderate pace.
Meanwhile, US company stocks on Wall Street gained. The dollar weakened against a basket of major currencies. Yields on long-term US Treasury bonds declined, whereas short-term yields rose, according to Reuters.
Consumer sentiment fell to a 2.5-year low in March, which could negatively impact retail sales. The President's policies may fuel inflation in the country and lead to reduced household incomes.
Economists surveyed by Reuters anticipate that consumer spending growth will slow to an annualized rate of 1.2% this quarter, down from the October-December pace last year.
The Federal Reserve Bank (FRB) of Atlanta predicts that the US economy will contract by 2.1% in the current quarter. In the fourth quarter, the country's GDP growth rate was 2.3%.