Retail sales fall more than forecast in January

New York -- Retail sales fell 0.8% in January, more than forecast, amid smaller receipts at gas stations due to plummeting fuel costs and declines at apparel and sporting goods stores, according to the U.S. Commerce Department. It was the second straight month of decline, suggesting consumers still remain cautious when it comes to spending.



Sales excluding automobiles, gasoline, building materials and food services edged up 0.1%, also less than forecast, after being flat in December.





“After robust sales in October and November, consumers have begun to pull back,” said Lindsey M. Piegza, chief economist, Sterne Agee. “Lower gas prices provided a welcome boost to sales early on and will continue to provide a floor to spending, but continued above-trend growth in sales will need to stem from organic job and income growth. The U.S. labor market is improving in terms of the number of jobs created, but the quality remains lackluster, putting little upward pressure on wages and keeping consumers cautious.”



Clothing sales in January fell 0.8% from December, and sales at furniture stores were down 0.7%. Department-store decreased 0.7%. But there were some bright spots. Restaurant sales rose 0.8% from December, on top of a 1.4% sales gain the prior month. Sales at building material and garden equipment stores increased 6.9%.