January Retail Sales Cool But Show Year-Over-Year Growth

Following a strong holiday season, consumers dialed back on spending in January, according to new data from the U.S. Census Bureau.

Retail sales in January were down 0.8% from December but up 0.6% year-over-year. That compared with increases of 0.4% month-over-month and 5.3% year-over-year in December.

“Retail sales softened in January compared with the holiday season, but consumers were still engaged,” said Jack Kleinhenz, chief economist with the National Retail Federation (NRF). “Extreme weather likely disrupted product demand and consumption patterns. January prices for goods came down, which affects sales figures even if the same number of items are sold, and increased prices for services pulled dollars away from retail purchases. Nonetheless, January’s numbers point to the U.S. economy and labor market continuing to chug along.”

January’s core retail sales as defined by NRF – based on the Census data but excluding automobile dealers, gasoline stations and restaurants – were down 0.8% from December but up 2.8% year-over-year. Core retail sales were up 3.2% unadjusted year-over-year on a three-month moving average as of January.

The figures are in line with the CNBC/NRF Retail Monitor, powered by Affinity Solutions, which reported that January sales nearly matched December’s levels. The Retail Monitor found core January retail sales were down just 0.04% seasonally adjusted from October and up 3.24% unadjusted year-over-year. That compared with increases of 0.19% month-over-month and 2.4% year-over-year in December.