Retail sales rebounded unexpectedly in January
First gain in 7 months; data glimmer of hope for a recession-hit economy
msnbc.com news services
updated 42 minutes ago
WASHINGTON - Sales at U.S. retailers unexpectedly rebounded in January, new government data showed Thursday, likely boosted by post-holiday discounts and providing a glimmer of hope for the recession-hit U.S. economy.
The Commerce Department said total retail sales rose 1 percent, advancing for the first time in seven months, after slumping by a revised 3 percent in December, previously reported as a 2.7 percent decline.
The January report shows strong increases in sales of automobiles and in general merchandise stores — the “big box” outlets — though sales by department stores, carrying fewer varieties of items, posted a decline.
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January's increase in retail sales was the biggest since November 2007.
Excluding motor vehicles and parts, sales were up 0.9 percent after a revised record 3.2 percent decline in December, previously reported as a 3.1 percent drop, the department said.
The January rise was the highest reading since May 2008.
Analysts polled by Reuters had forecast January retail sales to fall by 0.8 percent. Excluding motor vehicles, sales had been predicted to drop by 0.5 percent.
Gasoline sales jumped 2.6 percent, their biggest gain in seven months, after sliding 15.6 in December. Sales of building materials fell 3.2 percent after dropping 2.3 percent in December.