Sales at US retailers rose less than forecast in January, depressed by a drop in demand at building material stores and restaurants that may reflect the influence of harsh winter weather.

Purchases increased 0.3 per cent, the smallest gain since a drop in June and followed a 0.5 per cent December gain that was less than previously estimated, Commerce Department figures showed today in Washington.

Sales at retailers like Gap, Limited Brands, and Macy's topped analysts' estimates last month as merchants used
promotions to lure post-holiday shoppers before storms blanketed much of the US mid month.

Federal Reserve policy makers are among those saying bigger gains in employment are needed to ensure American consumers sustain spending.

Manufacturing in the New York region sped up in February, and the cost of imported goods climbed last month, other reports today showed.

The Federal Reserve Bank of New York's general economic index rose to 15.4, the strongest reading since June. Readings greater than zero signal expansion in the so-called Empire State Index, which covers New York, northern New Jersey, and southern Connecticut.

Import prices climbed 1.5 per cent in January, Labor Department figures also showed today. Excluding food and fuel, costs rose 0.6 per cent.

Bloomberg