Data released by the U.S. Department of Commerce shows retail industry sales grew in January. For the month, retail sales (excluding automobiles, gas stations and restaurants) grew 0.9 percent seasonally adjusted from December and 4 percent unadjusted year-over-year.
Total retail sales for the month (which include non-general merchandise categories such as autos, gasoline stations and restaurants) were up 5.6 percent unadjusted year-over-year and 0.4 percent seasonally adjusted month-to-month.
“A slightly improving labor market with gains in payrolls has lifted consumer confidence in January and corresponds with increasing retail sales,” says NRF chief economist Jack Kleinhenz. “However consumer spending alone will not be enough to sustain economic growth or provide a strong foundation for consistent retail sales and growth. We must see improvements in key economic indicators, such as housing and employment.”
Looking at specific retail sectors, sales in sporting goods, hobby, book and music stores increased 1.1 percent in January. General merchandise stores’ sales reported a 2 percent growth over December and sales at building material, garden equipment and supplies dealers increased 0.2 percent. Electronics and appliance stores’ sales rose 0.5 percent and sales at clothing and clothing accessory stores’ sales were flat.
The furniture and home furnishing stores saw a decline in January with sales dropping 0.2.
“Thanks to a combination of unseasonably warm weather across much of the country and millions of shoppers with gift cards burning holes in their pockets, retailers are still riding the tailwinds of consumers’ spending power,” says Matthew Shay, president and ceo, National Retail Federation (Washington, D.C.). “As a traditionally slower sales month for the industry, it’s encouraging to see such sustained growth in consumer spending and sentiment.”