Retail sales jump 3% in Jan, smashing expectations

By Jeff Cox for CNBC

Sales at retailers rose far more than expected in January as consumers persevered despite rising inflation pressures. Advance retail sales for the month increased 3%, compared with expectations for a rise of 1.9%, the Commerce Department reported.

Food services and drinking places surged 7.2% to lead all major categories. Motor vehicle and parts dealers increased 5.9%,while furniture and home furnishing stores saw a rise of 4.4%. Even with a 2.4% increase in gas prices, receipts at service stations were flat. Online retailers saw a rise of 1.3%, while electronics and appliances stores increased 3.5%. No categories saw a decline, following a December in which sales fell 1.1%.

“The monthly reports on industrial production, retail sales, and jobs were generally better than expected and point to a pickup in economic activity in early 2023 after a soft patch in late 2022,” said Bill Adams, chief economist for Comerica Bank.

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