U.S. retail sales in January jumped 5.1 percent after declining 0.3 percent in December, reports Business Insider. The growth in sales represents the biggest gain since June. On a year-over-year (YoY) basis, retail sales climbed 10.8 percent in January after rising 6.3 percent in December.
Stimulus payments and unemployment improvement provided a boost, including the second stimulus package of $600 payments which helped lift consumer spending. Spending among consumers making less than $60,000 a year rose 20 percent YoY in the week ending Jan. 10, reports The Wall Street Journal.
An estimated 88 percent of consumers who received the stimulus spent it immediately. The improved unemployment rate helped boost January retail spending which declined to 6.3 precent from 6.7 percent.