Following recent declines in U.S. retail sales, the Commerce Department released a report on Wednesday showing retail sales rebounded by much more than anticipated in the month of January.<\/p>\n
The Commerce Department said retail sales spiked by 5.3 percent in January after sliding by a revised 1.0 percent in December.<\/p>\n
Economists had expected retail sales to climb by 1.1 percent compared to the 0.7 percent decrease originally reported for the previous month.<\/p>\n
Excluding a 3.1 percent jump in sales by motor vehicle and parts retailers, retail sales still soared by 5.9 percent in January after tumbling by a revised 1.8 percent in December.<\/p>\n
Economists had expected ex-auto sales to increase by 1.0 percent compared to the 1.4 percent slump originally reported for the previous month.<\/p>\n
The report said sales by department stores skyrocketed by 23.5 percent, while sales by electronics and appliance stores, furniture and home furnishings stores and non-store retailers also saw double-digit growth.<\/p>\n
Significant sales growth was also seen at a variety of other stores, including gas stations, which saw sales shoot up by 4.0 percent amid the recent spike in gasoline prices.<\/p>\n
Closely watched core retail sales, which exclude automobiles, gasoline, building materials and food services, also surged up by 6.0 percent in January after plunging by 2.4 percent in December.<\/p>\n
Michael Pearce, Senior US Economist at Capital Economics, said the spike in retail sales highlights how quickly re-openings and the $600 stimulus checks have translated into stronger spending. <\/p>\n
“That means first-quarter GDP growth could be stronger than the already above-consensus 6% annualized we have penciled in,” Pearce said.<\/p>\n
He added, “That said, with the stimulus checks spent more quickly that we had expected, we expect retail sales to fall back in February.” <\/p>\n