European retail sales increased at the fastest rate in more than four years in January, led by gains in France and Germany. A gauge of euro-area retail sales rose to 55.8 this month from 52.9 in December when adjusted for seasonal swings, London- based Markit Economics said today in a statement. That is the highest since May 2006, Markit said. The index is based on a survey of more than 1,000 executives and a reading above 50 indicates expansion. Europeans’ confidence in the economic outlook held close to the highest in more than three years in January and the region’s services and manufacturing industries expanded faster than economists forecast this month. Growth in the U.S. economy, the world’s largest, probably accelerated in the fourth quarter, driven by consumer spending and exports, economists projected ahead of a report due later today. “The first month of 2011 data for euro-zone retailers is very encouraging, pointing to further positive consumer momentum in France and Germany and a long-awaited rise in Italian retail sales,’’ Trevor Balchin, senior economist at Markit, said in the statement. The “data signal that consumer spending will gain further momentum in the first quarter.” The January figure was the second-highest since the data started in January 2004, short of the record 56.3 in May 2006, Markit said. To contact the editor responsible for this story: Jones Hayden at jhayden1@bloomberg.net

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