Happier Numbers

The U.S. Commerce Department has released January figures showing retail sales were better than it was earlier thought.

Financial forecasters had expected a decline in sales after a disappointing holiday season. Instead, consumers pushed up sales of gasoline, clothing and automobiles, all of which had declined in December. Over all, according to the government’s numbers, January sales for all retail and food service providers increased a seasonally adjusted 0.3 percent, reversing a 0.4 percent drop in December.

Apparel and accessories specialty stores saw sales advance 1.4 percent from December 2007, driven in part by clearance of holiday merchandise. Department store sales fell by 1.1 percent.

Compared with January 2007, sales at apparel and accessories stores dropped 0.1 percent and department store sales fell 4.8 percent to $17.1 billion. Overall retail sales got a boost from a 2 percent rise at gasoline stations and higher car sales.

Earlier in the month, anecdotal reports by individual retailers had painted a gloomier picture, as most announced January sales drops from the same month a year ago.

“The January numbers are indicative of the issues consumers are facing, including the housing slump, a sluggish employment sector and high energy prices,” said Rosalind Wells, chief economist at the National Retail Federation. “We expect to see marginal improvements in the second half of the year once consumers begin to receive their rebate checks.” She was referring, of course, to the $168 billion dollar economic stimulus package passed by both houses of Congress and signed by the president yesterday. In addition to sending checks to taxpayers, the bill will provide some temporary tax incentives for businesses to make investments in their companies, such as new building and expansion and purchasing equipment and other assets, to help create new jobs.