By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) - U.S. retailers enjoyed stronger than expected sales in January, rebounding strongly after a disappointing report in the prior month, the Commerce Department reported Friday.
Retail sales rose 0.5% on a seasonally adjusted basis last month, marking the third increase in the past four months.
The gain was above expectations with economists surveyed by MarketWatch looking for a 0.3% increase.
Sales in November and December were revised up, adding to the sense of strength in January. November's sales were revised to a 2.0% gain from the 1.8% previously reported. December's sales were revised up two-tenths of a point to a 0.1% decline.
Economists see a clear upward trend in consumer spending that began in the second quarter.
Many believe that this trend will be strengthened if the labor market improves going forward. But there are many other economists who worry that sales may flatten out in the second half of the year as consumers grapple with high debt levels.
The figures are adjusted for seasonal factors but not for price changes. The data can be quite volatile.
Retail sales are up 4.7% in the past year, the government's data showed.
Rising gasoline prices boosted sales at gas stations by 0.4% but had only a small impact on the dollar volume of sales in January. Total retail sales excluding gasoline were also up 0.5%.
Retail details
Sales rose despite flat auto sales and weakness in home-related sectors like furniture and building materials.
Non-store retailers, electronics and clothing paced the January sales increase.
Auto sales were flat in January after rising 0.1% in December. Some analysts said recalls ordered by Toyota impacted sales in the month.
Excluding auto sales, January's retail sales increased 0.6%, in line with expectations.
Sales at furnishing stores fell 1.4%, and sales at building materials stores dropped 1.2%. However, sales at electronics stores rose 1.2%.
Sales of nondurable goods were mostly higher in January.
Sales at general merchandise stores rose 1.5%, including a 0.2% increase at department stores.
Sales at apparel stores increased 0.3%.
Sales at food stores rose 0.8%. Sales at restaurants increased 0.6%.
Sales at health and personal care stores rose 0.1%.
Sales at stores catering to leisure-time activities, such as reading and sports, jumped 1.0%.
Sales at nonstore retailers, such as catalogs and online stores, rose 1.6%.
