Retail Sales in January Higher Than Expected

Washington, DC, Feb. 12, 2010--Retail sales rose more than expected in January, according to the Commerce Department.

The government said Friday that retail sales increased by 0.5 percent last month, the best showing since November and better than the 0.3 percent increase economists had expected.

Excluding autos, sales posted a 0.6 percent increase, also better than expected, with strength coming from a surge at general merchandise stores.

Strength in consumer spending is important because it accounts for 70 percent of economic activity.

The 0.5 percent increase in retail sales in January followed a 0.1 percent decline in December, a figure that was revised up from an initial report that sales had fallen 0.3 percent during the month. The latest reading was the best showing since sales had surged by 2 percent in November.