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A Target worker helps a customer at a Target store in San Rafael, California.
U.S. retail sales unexpectedly rose in January, lifted by an increase in purchases of building materials and discretionary spending, but receipts in December were much weaker than initially thought.
The Commerce Department said on Monday retail sales rose 0.2 percent. Data for December was revised down to show retail sales dropping 1.6 percent instead of tumbling 1.2 percent as previously reported. The drop in December was the biggest since September 2009 when the economy was emerging from recession.
Economists polled by Reuters had forecast retail sales to be unchanged in January. Retail sales in January increased 2.3 percent from a year ago.
The January retail sales report was delayed by a 35-day partial shutdown of the federal government that ended on Jan. 25. February’s retail sales report, which was scheduled for publication on Thursday, will be released on April 1.
Excluding automobiles, gasoline, building materials and food services, retail sales rebounded 1.1 percent in January after a downwardly revised 2.3 percent plunge in December. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product.
They were previously reported to have decreased 1.7 percent in December. The downward revision to December core retail sales could have an impact on the government’s fourth-quarter gross domestic product estimate.
The government reported last month that the economy grew at a 2.6 percent annualized rate in the last three months of 2018.
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