U.S. consumer spending fell for the first time in nearly two years in January and the goods trade deficit widened to a record high as businesses front-loaded imports to avoid tariffs, setting up the economy for weak growth or even a contraction this quarter.

A key price gauge declined last month, a sign that inflation may be cooling though stiff tariffs threatened by the White House threaten that progress

The drop may raise alarms about whether Americans are growing more cautious amid widespread uncertainty about the economic outlook.