U.S. retail sales jumped a seasonally adjusted 3 percent in January from December, the largest monthly increase in nearly two years after declines in the final two months of last year, the Commerce Department said Wednesday.

Sales were up 6.4 percent year-over-year. In December sales were down 1.1 percent month over month but up 5.9 percent year-over-year.

The National Retail Federation’s (NRF) calculation of retail sales, which excludes automobile dealers, gasoline stations and restaurants to focus on core retail, showed January was up 1.5 percent from December and up 4.8 percent unadjusted year-over-year. In December, sales were down 0.5 percent month over month but up 4.8 percent year-over-year, according to NRF’s calculations. The association’s numbers were up 5 percent unadjusted year-over-year on a three-month moving average as of January.

“Despite inflationary headwinds, January retail sales show the resiliency of consumers in how they manage their budgets and make decisions on how, when and where to spend their hard-earned dollars,” NRF President and CEO Matthew Shay said in a statement. “Retailers understand the needs of consumers and have in place the people, processes, and technologies to meet consumers with the right inventory, competitive pricing and great experiences however consumers choose to shop.”

“Consumer spending clearly picked up after the holidays,” NRF Chief Economist Jack Kleinhenz said. “Sales were helped along by job and wage growth, slightly lower inflation and unusually warm and dry weather that preceded February’s record cold. A large cost-of-living adjustment gave Social Security beneficiaries more money to spend, and many consumers were still drawing on savings built up during the pandemic. January made up for the softer pattern of spending in December that came after early shopping pulled holiday spending forward this past fall.”

January’s results follow a 5.1 percent year-over-year increase in combined November and December holiday sales to $934.7 billion, according to NRF’s calculations. Total 2022 retail sales as calculated by the association grew 7 percent to $4.9 trillion.

January sales were up in all but one retail category on a yearly basis, led by sporting goods stores, clothing stores and online sales, and increased across the board on a monthly basis.

Specifics from key sectors include:

  • Sporting goods stores were up 0.2 percent month over month seasonally adjusted and up 6.9 percent unadjusted year-over-year;
  • Clothing and clothing accessory stores were up 2.5 percent month over month seasonally adjusted and up 6.6 percent unadjusted year-over-year;
  • Online and other non-store sales were up 1.3 percent month over month seasonally adjusted and up 5.7 percent unadjusted year-over-year;
  • Grocery and beverage stores were up 0.1 percent month over month seasonally adjusted and up 5.3 percent unadjusted year-over-year;
  • Health and personal care stores were up 1.9 percent month over month seasonally adjusted and up 4.9 percent unadjusted year-over-year;
  • Furniture and home furnishings stores were up 4.4 percent month over month seasonally adjusted and up 4.5 percent unadjusted year-over-year;
  • General merchandise stores were up 3.2 percent month over month seasonally adjusted and up 3.4 percent unadjusted year-over-year;
  • Building materials and garden supply stores were up 0.3 percent month over month seasonally adjusted and up 3.4 percent unadjusted year-over-year; and
  • Electronics and appliance stores were up 3.5 percent month over month seasonally adjusted but down 6.5 percent unadjusted year-over-year.

Photo courtesy Ivy & Leo