Retail Sales Up 0.7% Despite Bad Weather

Retail sales, held back by record cold weather in much of the country, still managed an increase of 0.7% in January despite sharp declines at department and clothing stores, the government reported today.

The Commerce Department said sales climbed to a seasonally adjusted total of $110.7 billion last month following a 0.5% drop in December.

Much of the gain was attributed to a strong increase in auto sales, which rose 4% in January. It was the fourth month out of the last five in which auto sales have advanced. Auto sales in January were 7.1% higher than a year ago.

But sales at clothing stores dropped 5.1% in January, the biggest decline since October, 1967. Sales at larger department stores were also off a sharp 5%.

The report said both declines may have been caused by the record cold during the month.

The weakness at apparel and department stores contributed to a 0.2% in sales of all nondurable goods, items not expected to last at least three years.