February sales beat expectations

Washington, D.C. Beating analysts’ expectations for a second straight month, February retail sales showed surprising growth.

According to the National Retail Federation, retail industry sales for February (which exclude automobiles, gas stations and restaurants) rose 0.6% seasonally adjusted from January, and decreased 5.0% unadjusted over last year.

February retail sales released today by the U.S. Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) decreased 12.3% unadjusted year-over-year, and 0.1% seasonally adjusted month-to-month.

“While we are seeing some growth in consumer spending, it remains to be seen whether this trend will continue,” said Rosalind Wells, chief economist, NRF. “Given the state of the economy, NRF is still expecting year-over-year sales declines through the first half of the year with a slight turnaround at the end of 2009.” 

While year-over-year comparisons look grim, month-to-month sales growth was a nice surprise for retailers. Sales at furniture and home-furnishing stores grew 0.7% seasonally adjusted from January, but decreased 14.8% unadjusted over last year. Electronics and appliance stores sales increased 1.2% seasonally adjusted month-to-month, but decreased 4.9% unadjusted year-over-year. Clothing and clothing accessory stores sales rose a solid 2.8% seasonally adjusted from last month, but decreased 6.5% unadjusted from 2008.

Sales at sporting goods, hobby, book and music stores also increased 0.2% seasonally adjusted month-to-month, but decreased 4.8% unadjusted over last year.