The US economy faced a dual setback in January, with both retail sales and manufacturing output recording declines. Retail sales posted their largest drop in nearly two years, while manufacturing production unexpectedly contracted,

U.S. retail sales dropped sharply last month, in part because cold weather kept more Americans indoors and dented sales at car dealers and most other stores.

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.