U.S. Retail Sales Rebounded Sharply in January

U.S. retail sales jumped 3% in January as consumers broadly boosted spending on vehicles, furniture, clothing and dining out, adding to signs that economic growth picked up at the start of the year.

Last month’s seasonally adjusted spending increase was the biggest since March 2021 and followed two months of declines at the end of last year, the Commerce Department said Wednesday.

Job growth surged and high inflation cooled slightly in January after rising prices, increased borrowing costs and uncertainty about the economy caused households to pull back on spending late last year.

The unexpectedly strong January employment report and still solid wage gains bode well for consumer spending, and some economists think economic growth could be picking up. The Federal Reserve has raised interest rates aggressively since last March in an attempt to slow the economy and bring down inflation.

The consumer-price index climbed 6.4% in January from a year earlier, down slightly from 6.5% in December but still well above the Federal Reserve’s 2% inflation target.