Sales at US retailers unexpectedly fell in May for the first time since September, pulled down by a record slump in purchases of building materials.
The surprise fall will add to fears that the economic recovery is losing some steam.
The US Commerce Department said total retail sales dropped 1.2 per cent, the largest decline since September, after rising by an upwardly revised 0.6 per cent in April. Sales in April were previously reported to have increased 0.4 per cent.
Analysts had forecast retail sales to rise by 0.2 per cent last month.
Retail sales had risen for seven straight months.
Compared to May last year, sales were 6.9 per cent higher.