RETAIL SALES REBOUND IN JANUARY

Post-holiday bargains may have been too good for shoppers to pass up as January retail sales increased slightly over the previous month. According to the National Retail Federation, retail industry sales for January (which exclude automobiles, gas stations, and restaurants) increased 0.5% seasonally adjusted from last month and decreased 2.1% unadjusted year-over-year.
January retail sales released by the Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 1.0% seasonally adjusted from December but decreased 9.0% unadjusted year-over-year.
“While 2009 got off to a surprising start, it’s going to be difficult for retailers to maintain this momentum,” said NRF Chief Economist Rosalind Wells. “We expect the first half of the year to present challenges while giving way to sustained growth in the fourth quarter.”
While seasonal increases were encouraging for retailers, budget-conscious consumers still spent much less this year compared to last January. Electronic and appliance stores sales increased 2.6% seasonally adjusted from last month but decreased 7.4% unadjusted year-over-year. Sales at clothing and clothing accessories stores increased 1.6% seasonally adjusted from December and decreased 8.0% unadjusted over last January.
As shoppers continued to save more and spend less, they continue to spend on the necessities. General merchandise stores sales increased 1.1% seasonally adjusted over last month and 3.5% unadjusted over last year. Additionally, health and personal care stores sales were flat seasonally adjusted month-to-month and increased 3.5% unadjusted year-over-year.