ReturnLast year Americans knocked out their holiday shopping early, leading to frigid sales during the typically bountiful November and December months — and triggering speculation that the US consumer was tapped out.
That wasn’t the case. Last month, spending rebounded in a big way.
US retail sales surged in January by the most in almost two years, soaring 3% from December, the Commerce Department reported Wednesday.
Economists had anticipated sales would rise by 1.8%, after the 1.1% decline in December when consumers pulled back on spending amid high inflation and concern about the direction of the economy.
Instead the figures easily topped forecasts, making January the largest monthly sales bump since March 2021 when a third round of stimulus checks were cut.
“The increase in retail sales, combined with the very strong January jobs report, reduce concerns that recession is imminent,” Gus Faucher, PNC’s chief economist, wrote on Wednesday. “Although some of the increase came from higher prices, more of it was from higher volumes.”
