U.S. retail sales fell 0.4% in March, the biggest decrease in nine months, amid a slowdown in hiring and higher taxes. Excluding sales of autos, gas and building materials, core sales dropped 0.2% in March, following a 0.3% increase in January.
Retail sales ticked up in January as consumers adjusted their spending in response to the increase in payroll taxes and rise in gasoline and energy prices.
Deloitte is forecasting holiday sales will increase between 3.5% and 4% as the economy's health and the presidential election take center stage among consumers this fall.
A report released Friday by the Commerce Department said that retail sales in the U.S. rose 0.5% in July, the most in four months and demonstrating that consumers may be holding their own in a tumultuous economy.
After coming off a strong November, retailers found their momentum waned in December, with many turning in mixed sales for the month. Industry experts said sales were impacted by a still-cautious consumer and the blizzard the crippled the Northeast in the days immediately following Christmas.