New-Car Sales Boost January Retail Figures

Brisk shopping momentum spilled into January as consumers flocked to new-car showrooms and department stores after the Christmas season, the Commerce Department’s report on retail sales showed Friday.

Total sales climbed 0.3% to a seasonally adjusted $262.21 billion in January. That followed an upwardly revised 1.7% jump in sales during December, for the strongest monthly performance since an 1.8% rise in February last year. The December figure was previously reported as an increase of 1.2%.

Some softening in sales had been expected for January, because many consumers had stockpiled items such as food in December in advance of the year 2000 date change.

Excluding autos, sales fell 0.3% in January, the largest decrease since a 0.9% drop in April 1997. Still, that followed a 1.9% increase in December sales excluding autos, the biggest increase since April 1993.

New-car sales, which account for one-quarter of monthly business, climbed 2.3% after a 1.4% rise in December.

Commerce officials said it was the first decline in sales excluding autos in more than two years, since a 0.1% fall in December 1997. It was the largest since a 0.9% drop in April 1997.

But analysts emphasized that it did not reflect any weakening in consumer demand.

“In no way, shape or form can the January retail sales results be termed disappointing,” said Ken Mayland, an economist with KeyCorp in Cleveland. “In light of the huge December revision, consumers sustained an extremely robust rate of buying.”

Sales at department stores and chain stores were up 0.8% after a 1.1% gain in December, indicating that shopping remained strong after Christmas.

Grocery store sales fell by 2.2% after a 3.2% jump in December, possibly because concern about year-end supply disruptions had subsided and stores were no longer stockpiling supplies.