US retail sales unexpectedly rise in January

Sales at US retailers unexpectedly rebounded in January, government data showed today, likely boosted by post-holiday discounts…

Sales at US retailers unexpectedly rebounded in January, government data showed today, likely boosted by post-holiday discounts and providing a glimmer of hope for the recession-hit economy.

The Commerce Department said total retail sales rose 1 per cent, advancing for the first time in seven months, after slumping by a revised 3 per cent in December, previously reported as a 2.7 per cent decline.

January's increase in retail sales was the biggest since November 2007.

Excluding motor vehicles and parts, sales were up 0.9 per cent after a revised record 3.2 per cent decline in December, previously reported as a 3.1 per cent drop, the department said. The January rise was the highest reading since May 2008.

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Analysts polled by Reuters had forecast January retail sales to fall by 0.8 per cent. Excluding motor vehicles, sales had been predicted to drop by 0.5 per cent.

Gasoline sales jumped 2.6 per cent, their biggest gain in seven months, after sliding 15.6 in December.

Sales of building materials fell 3.2 per cent after dropping 2.3 per cent in December.

Reuters