Retail sales rise unexpectedly in the USA

Retail sales in the USA rose by 1% in January, surprising many analysts who expected a decline of 0.4%.  This improved performance by US retailers breaks six months of declining sales.

These seasonally adjusted figures show the strongest monthly increase since late 2007, according to the US department of Commerce.  Some retail chain stores and manufacturers, however, have been reporting poor sales this year.

Sectors such as clothing and foods rose strongly as did consumer electronic goods, presumably in response to heavy discounting by retail chains.

Rising petrol prices also contributed to the positive sales performance, with sales on the forecourts rising by 2.6%.

The growth in retail sales in the USA follows a similar monthly increase in the UK. The British Retail Consortium recently published figures that showed a 1.1% increase in retail sales this January.

UK sales growth was boosted by large discounts in January sales and a strong increase in food sales, which rose by 5.1%.

Welcome as these retail figures are, experts are warning that the outlook for retailers on both sides of the Atlantic will remain difficult over the coming months as consumers continue to reign back on their spending.