US retail spending fell in March as consumers slumped after a banking crisis fueled recession fears, adding to signs of a slowing economy, CNN reported.

The US Commerce Department noted on Friday that retail sales fell 1 percent in March from the previous month, sharper than the expected 0.4 percent decline.

Economists at the Federal Reserve predicted that the US economy would head into recession later in the year as the delayed effects of interest rate hikes take deeper root. Fed economists had predicted anemic growth, with risks of recession, before the collapse of Silicon Valley and Signature.