Advertisement

Consumer Spending Up Healthy 0.6% in Jan.

Share
From Associated Press

Consumer spending in the new year began on a strong note as retail sales rose a healthy 0.6% in January despite a slowdown in the pace of auto sales, the government said today.

The Commerce Department said retailers sold $138.9 billion worth of goods last month, up $760 million from the December sales level after adjusting for seasonal variations but not for price increases.

January’s jump in sales was the best performance since a 1.3% increase in November and followed a revised 0.1% decrease in December.

Advertisement

The overall rate was held back by a 0.9% drop in car sales last month that followed a 0.4% dip in that category in December.

Excluding autos, which account for about one-fourth of the retail total, sales in January would have been up 1%, following an unchanged sales pace in December.

The only category besides autos to record a decrease in January was clothing and accessory stores.

Retail spending is seen as a key barometer of economic health because it represents about one-third of the gross national product.

The important general merchandise category, which includes department store sales, shot up 1.7% in January after inching up 0.1% in December.

Sales of durable goods--”big ticket” items intended to last three or more years--edged up 0.1% in January after an identical rise in December. Non-durable goods surged 0.8% after dropping 0.2% during the previous month.

Advertisement

Here are sales details for other retail categories:

--Furniture and home furnishings, up 0.4% in January after a 1.1% drop in December.

--Hardware and building supplies, up 1.4% after a 2% increase the previous month.

--Grocery and other food stores, up 1% after a 0.9% drop.

--Drug stores, up 2.9% after a 2.7% decrease.

--Clothing stores, down 1.1% after a 1% increase.

--Restaurants and bars, up 1.2% after a 1.1% increase.

--Gasoline stations, up 1% after the same increase the previous month.

Advertisement