By CountingPips.com
U.S. Retail Sales rose more than unexpected in the month of February as consumer spending on retail goods edged higher following an increase in sales for January. Advance estimates of retail sales showed that sales increased by 0.3 percent to a total of $355.5 billion in February, according to the report by the U.S. Commerce Department released today. January’s retail sales data was revised lower to show an increase of 0.1 percent after the original report
The February retail sales data was better than the market forecasts which were expecting retail sales to decline by approximately 0.2 percent. Increased retail sales data bodes well for the domestic economic recovery as consumer spending accounts for roughly two-thirds of economic activity in the U.S.
On an annual basis, February’s retail sales level was 3.9 percent higher than the February 2009 sales level following an annual increase of 4.1 percent in January.
Core retail sales, excluding automobile sales and parts, advanced by 0.8 percent in February after the revised data showed that core sales fell by 0.5 percent in January. The core sales data surpassed market forecasts which were expecting a rise of 0.3 percent. On an annual basis, core sales rose by 4.2 percent in February from the February 2009 level following an annual gain of 4.3 percent in January.
Contributing to the advancement in retail sales numbers for January was a 3.7 percent jump in electronics & appliance stores sales and a 2.5 percent increase in miscellaneous stores retailers. Food and beverage store sales gained by 1.3 percent while general merchandise store sales advanced by 1.0 percent.
Contributing negatively to the retail data was a decrease in motor vehicle & parts dealer sales by 2.0 percent in February while health & personal care stores sales declined by 0.7 percent.
