Retail sales rose more than expected last month despite tumbling gasoline prices, the big Northeast snowstorm and sluggish job growth.
Sales increased 0.2%, the Commerce Department said Friday, more than the 0.1% gain economists expected. Also encouraging is the initial estimate of a 0.1% drop in December was revised to a 0.2% increase.
Excluding autos, which are volatile, and gasoline, whose sales totals have been suppressed by low prices, purchases at stores and online increased a solid 0.4% last month. Economists expected a 0.3% rise.
"The markets may have decided that the U.S. is headed for recession, but obviously, no one told U.S. consumers," economist Paul Ashworth of Capital Economics wrote in a note to clients.
Sales increased 1.6% online, 0.8% at grocery stores and general merchandise outlets, 0.6% at building-supply stores and 0.2% at clothing stores.
Those offset declines of 0.5% at furniture stores, 2.1% at sporting good stores and 0.5% at restaurants and bars.
Consumer spending underpinned economic growth last year, helping counter the negative impact of weakness abroad, a strong dollar and a pullback in energy investment in response to low oil prices.
Sources usatoday
