US retail sales grow by more than expected in January

US retail sales unexpectedly increased in January, bouncing back from the prior month's 1.1% drop.

According to the Census Bureau, retail sales rose 3% month-on-month in January - the strongest improvement since March 2021 and well and truly ahead of expectations for 1.8% increase. Excluding autos, sales rose 2.3% month-on-month.

The biggest increases were seen department stores, food services and drinking places, motor vehicles and parts, furniture stores, electronics and appliances, miscellaneous stores, and clothing. Sales at gasoline stations were flat.

The report seemingly indicates that US consumer spending remains robust after a slowdown in 2022, amid a strong labour market, wage growth and signs that inflationary pressures may be easing.

Reporting by Iain Gilbert at Sharecast.com