Retail sales rise 0.5% in January

Washington, D.C. The Commerce Department said total retail sales edged up 0.5% to $355.8 billion in January, better than the 0.3% increase most economists had expected. Excluding autos, sales posted a 0.6% reading, also better than expected.

The 0.5% increase followed a 0.1% decline in December, a figure that was revised up from an initial report that sales had fallen 0.3% during the month. The January reading was the best showing since sales had surged by 2% in November. The year-to-year increase was more impressive. January retail sales jumped 4.7%, compared with the same month in 2009.

“We continue to see the economy show subtle signs of improvement,” said Rosalind Wells, chief economist for the National Retail Federation. “While the recovery still has a long way to go, we remain encouraged by the latest retail sales figures.”

General merchandise store sales rose 1.5% in January, rebounding from a 1.1% drop in the prior month, and department store sales were up 0.2% after a 0.4% decline in December.

Sales at specialty apparel stores rose by 0.3%, while sales at gasoline stations were up 0.4%.

Other stores experiencing increases in January were sporting goods stores, restaurants and bars, and nonstore retailers, the category that covers Internet shopping.

Housing sector-related sales, however, experienced big drops. Sales were down 1.4% at furniture stores, and 1.2% at hardware stores.