WASHINGTON – The value of retail sales rose 0.2% in January, above expectations and following an upward revised 0.2% gain in December, putting first quarter spending solidly above the fourth quarter average, data released by the Commerce Department Friday morning shows.
Retail sales were up 0.1% excluding the motor vehicle component following an upward revised 0.1% gain in the previous month. Motor vehicle sales posted a 0.6% increase in the month after rising by 0.5% in the previous month.
Excluding motor vehicles, gasoline, and building materials, "core" retail sales were up 0.4%. And for good measure, excluding food services as well as those three measures, retail sales were up 0.6%.
Gasoline station sales fell 3.1% in January continuing a string of declines that can be linked to falling prices. On the other hand, building materials sales rose 0.6% in January, maintaining its streak of solid gains.
In addition to the motor vehicle and building materials categories, there were large sales gains for food and beverage stores, general merchandise stores (though department stores fell 0.8%), miscellaneous stores, and nonstore retailers. There were sales declines for food services and drinking places, sporting goods, and furniture stores.
An MNI calculation shows that total retail sales rose 1.6% at a seasonally adjusted annual rate in January compared with the fourth quarter, due in large part to a 4.8% annualized gain in motor vehicle sales in the quarter. Retail sales excluding motor vehicles were up 0.7% at an annual rate in the quarter, while sales excluding motor vehicles and gas were up 2.6% at an annual rate. Gasoline station sales were down 15.3% at an annual rate in the quarter.
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