In a surprising turn, retail sales got a bit of a boost last month following a six-month decline, according to a new report by the National Retail Federation.
January sales rose by a half percent. That estimate excludes automobiles, gas stations, and restaurants. Analysts said the boost in spending is likely from shoppers taking advantage of post-holiday sales and discounts.
The Commerce Department painted a brighter picture by including the non-general merchandise categories—autos, gasoline stations and restaurants. In its report released yesterday, January retail sales inched up 1%, compared to a 3% dip December.
While the figures offer a glimmer of good news, a turnaround is not expected before yearend.
“While 2009 got off to a surprising start, it’s going to be difficult for retailers to maintain this momentum,” NRF Chief Economist Rosalind Wells said in a statement. “We expect the first half of the year to present challenges while giving way to sustained growth in the fourth quarter.”
Despite the growth, consumers still spent less in January compared to one year ago. For example, electronics and appliance stores sales rose 2.6% last month, but decreased 7.4% year-over-year. Clothing and clothing accessories stores saw a 1.6% hike in spending seasonally adjusted from December, but that figure was an 8% decrease compared to January 2008.
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