US retail sales up in Jan; easing inflation encourages spending: NRF

The US Census Bureau said overall retail sales in January were up 3 per cent from December and up 6.4 per cent YoY. In December, sales were down 1.1 per cent MoM but up 5.9 per cent YoY.

Retail sales bounced back strongly in January as inflation eased and income grew, the National Retail Federation (NRF) said. Clothing store sales were up 2.5 per cent MoM seasonally adjusted and up 6.6 per cent unadjusted YoY. Online and other non-store sales were up 1.3 per cent MoM seasonally adjusted and up 5.7 per cent unadjusted YoY.

NRF’s calculation of retail sales, which excludes automobile dealers, gasoline stations and restaurants to focus on core retail, showed January was up 1.5 per cent from December and up 4.8 per cent unadjusted YoY. In December, sales were down 0.5 per cent MoM but up 4.8 per cent YoY. NRF’s numbers were up 5 per cent unadjusted YoY on a three-month moving average as of January.

January’s results follow a 5.1 per cent YoY increase in combined November-December holiday sales to $934.7 billion. Total 2022 retail sales as calculated by NRF grew 7 per cent to $4.9 trillion.

“Despite inflationary headwinds, January retail sales show the resiliency of consumers in how they manage their budgets and make decisions on how, when and where to spend their hard-earned dollars,” NRF president and CEO Matthew Shay said. “Retailers understand the needs of consumers and have in place the people, processes, and technologies to meet consumers with the right inventory, competitive pricing and great experiences however consumers choose to shop.”

“Consumer spending clearly picked up after the holidays,” NRF chief economist Jack Kleinhenz said. “Sales were helped along by job and wage growth, slightly lower inflation and unusually warm and dry weather that preceded February’s record cold. A large cost-of-living adjustment gave Social Security beneficiaries more money to spend, and many consumers were still drawing on savings built up during the pandemic. January made up for the softer pattern of spending in December that came after early shopping pulled holiday spending forward this past fall.”

Fibre2Fashion News Desk (KD)