Anyone for Some Good News?

Internet sales lead January retail sales increase

I’ve always felt that January got a raw deal. Sandwiched in between two months with beloved holidays, January typically has little to write home about, with the obvious exception of Martin Luther King Day. This year, January has something else to be proud of: according to the Commerce Department, U.S.  retail sales jumped one percent in January, reversing a six-month declining trend and defying economists’ expectations by posting the biggest increase in 14 months.

The surge was likely caused by higher gasoline prices and sales, with buyers snapping up post-holiday discounts. Though analysts caution that the relief may not last, it’s nevertheless interesting to note this unexpected upswing in sales. According to the Commerce Department, January retail sales rose 1 percent from December after having fallen for six straight months. Total retail sales (excluding autos and parts) rose 0.9 percent, which easily beat estimates by economists who expected a decline of 0.5 percent.

At the risk of sounding too much like an infomercial announcer: but wait, there’s more. The Commerce Department also reports that non-traditional retailers such as mail order and Internet sales advanced 2.7 percent in January. Given the expectations, this is great news and something that should give retailers a little spring in their step. And, of course, it looks as if online is not such a bad place to be.

It’s not clear yet whether this increase in sales is just a blip or if it’s the start of an eventual retail sales thaw. We’re still glad to see something positive happening. It may not be cause for dancing in the streets, but there’s no harm in doing a little celebratory two step—if no one’s watching and you think you can pull it off. The news is good for retailers, good for consumers and…good for January. Way to go, January!

– Noah Belson, Content Quality Analyst