January Retail Sales Up Over Last Year
An improving economy kept January retail sales nearly as good as the holiday season’s strong showing—dropping only 0.26 percent seasonally adjusted from December—and fueled a healthy 5.4 percent increase year-over year, according to the National Retail Federation (NRF) said. The numbers exclude automobiles, gasoline stations and restaurants.
“These numbers reinforce a positive start to 2018 that reflects ongoing consumer optimism brought about by solid economic fundamentals,” said Jack Kleinhenz, NRF chief economist. “Consumer spending continues to grow at a steady pace and is showing year-over-year increases across almost all retail sectors. Employment has increased, labor markets are tightening and wage growth is on the rise. Stock market headlines are a concern for some shoppers, but households have the wherewithal to spend, and the tax cuts consumers are now seeing in their paychecks will bring an added boost.
“Some observers are spinning this as a disappointing month, but you’ve got to keep in mind that we’re coming off one of the strongest holiday seasons in years,” Kleinhenz said. “It’s also difficult to draw conclusions from month-to-month changes because of the huge seasonal-adjustment factors.”
The January numbers follow 5.1 percent unadjusted year-over-year growth in holiday sales during November and December, which was revised down slightly from the 5.5 percent initially reported. December was down 0.1 percent from November seasonally adjusted but up 3.8 percent year-over-year. The three-month year-over-year moving average is at 5.2 percent.
The results comes as NRF is forecasting that 2018 retail sales will grow between 3.8 percent and 4.4 percent over 2017.
NRF’s numbers are based on data from the U.S. Census Bureau, which reported today that overall January sales—including automobiles, gasoline and restaurants—were down 0.3 percent seasonally adjusted from December but up 5 percent year-over-year.
NRF, a retail trade association, represents discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and internet retailers from the United States and more than 45 countries.