US retailers more than regained ground lost in an unexpected December slump, with a surprise boom in January sales, according to government data released Wednesday.
Retail sales rose 3.8 per cent last month, the Commerce Department said, double what was expected and a dramatic reversal of the 2.5 per cent decline in December, which was worse than originally reported.
"The strength of this rebound adds credence to the idea that December sales were weak largely because people pulled holiday purchases forward, fearing shortages of popular items," Ian Shepherdson of Pantheon Macroeconomics said.
He said the report points to better-than-expected GDP growth in the first quarter.
The auto industry, which continues to face lean inventories due to the global semiconductor shortage that has cut into production, bounced back last month with a 5.7 per cent jump in sales of motor vehicles and parts, according to the Commerce Department.
Nonstore retailers encompassing e-commerce firms saw sales soar 14.5 per cent, while furniture and home stores reported a 7.2 per cent increase, and sales at department stores rose 9.2 per cent, the report said.
Building materials and garden equipment dealers saw a 4.1 increase in sales, and electronics and appliance business increased 1.9 per cent.
Gas stations were among the few sectors that reported a decline in sales in January, with a 1.3 per cent fall. Sporting goods stores saw a three per cent decrease, while bars and restaurants and health and personal care stores suffered dips of under one per cent.
