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.

Retail expert Rich Hollander sits down with FOX 10's Ellen McNamara and explains why retail spending is down .9% in January and if it is a sign of an incoming recession.

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.