Retail sales surge 3% in January 2023, in clear sign the economy is still growing
Sales at U.S. retailers jumped 3% in January — the biggest increase in almost two years — as Americans flocked to stores at the start of the new year.
Retail sales are a big part of consumer spending and offer clues about the strength of the economy. Sales had been forecast to rise 1.9%, based on a Wall Street Journal poll of economists.
Receipts increased a still-strong 2.6% when auto dealers and gas stations are excluded.
The sterling January report could help generate a better-than-expected increase in first-quarter GDP.
At the same time, though, it could ramp up pressure on the Federal Reserve to keep raising interest rates to try to tame inflation. Strong economic growth tends to add to inflation presssures.
Sales of new vehicles and parts, an up-and-down category, jumped 5.9% last month. That’s the biggest increase in 22 months.
At: https://www.marketwatch.com/story/retail-sales-surge-3-at-start-of-2023-in-clear-sign-the-economy-is-still-growing-53d14a41?mod=search_headline
Shoppers browse albums at the Criminal Records store in Atlanta, Georgia, on Tuesday.
U.S. retail sales rebounded by a seasonally-adjusted 3%, after a 1.1% slide in December - much higher than a 1.9% average forecast.
From a year earlier however, retail sales were up 6.4% - matching a 6.4% inflation rate in the same period.
