Retail Sales Rise Unexpectedly in January

Washington, DC, Feb. 12, 2009--U.S. retail sales unexpectedly rose in January, halting a record six-month slide, reflecting higher gasoline prices and more spending on items such as clothing and food.

The 1 percent increase followed a revised 3 percent drop in December, the Commerce Department said today in Washington. Purchases excluding automobiles gained 0.9 percent.

Retail sales were projected to fall 0.8 percent after an initially reported 2.7 percent drop the prior month, according to the median estimate of 72 economists. Forecasts ranged from a decline of 2.2 percent to a 0.7 percent gain.

Sales excluding automobiles were forecast to decrease 0.4 percent from the prior month, according to the survey median.

Demand for automobiles has softened as banks tighten lending standards and consumers hunker down. Sales plunged 55 percent at Chrysler LLC and sank 49 percent at General Motors Corp. last month as car loans became scarce after credit seized up late last year.

Sales also rose for electronics, appliances, clothing and food and beverages. Sales declined at building materials stores, furniture outlets and department stores.