Feb 12, 2009

Surprise increase in retail salesBy Parija B. KavilanzCNNMoney.com

New York — Retail sales unexpectedly rose in January, giving hard-hit retailers some respite after six straight months of sales erosion, the government reported Thursday.

The Commerce Department said total retail sales rose 1% last month versus a revised drop of 3% in sales in December. December sales were originally reported to have declined 2.7%.

Economists surveyed by Briefing.com on average had forecast a decrease of 0.8% for January.

Sales excluding autos and auto parts rose 0.9% compared to a revised 3.2% drop in the measure in December. December sales minus auto purchases were originally reported to have declined 3.1%.

Economists had forecast a decrease of 0.4% in the measure for January, according to Briefing.com.

“These numbers are a little puzzling to me,” said Scott Hoyt, senior director of consumer economics with Moody’s Economy.com

“The gains in apparel purchases is a bit of a surprise given the numbers we’ve seen from retailers,” he added.

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