Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Retail Sales Jumped 3.8% in January, Beating Estimates Amid Inflation

By Cristian Bustos. Originally published at ValueWalk.

online shopping

Retail Sales increased by 3.8% in January, well above the 2.1% Dow Jones estimate and depicting a consumer spending comeback. According to the Commerce Department on Wednesday, the numbers are not adjusted for inflation.


Q4 2021 hedge fund letters, conferences and more

Retail Sales Surge

As reported by CNBC, the rising inflation did little to dent consumer spending in January as retail sales soared by 3.8%, beating expectations for the month. Furniture and online shopping were the main drivers behind the surge, while gasoline and sporting goods went the opposite direction.

“The numbers are not adjusted for inflation, so the 7.5% rise in the consumer price index for the month helped push a reversal from the 2.5% decline in December, which was revised lower from the initially reported 1.9% drop,” CNBC informs.

In December, retail sales had declined by 2.5% as the recovery is a positive sign and underlines a post-holiday surge.

Online shopping had a stellar month as nonstore retailers saw a gain of 14.5%, while furniture and home decor sales grew by 7.2%.

Positive Outlook

PNC’s chief economist, Gus Faucher, said: “Consumers say they are worried about inflation, but they continue to spend. Even taking into account the December decline, retail sales in recent months have been increasing much faster than prices, so households are purchasing larger volumes of goods and services, not just paying higher prices.”

Despite the surge of the Omicron variant, food and drink sales decreased by merely 0.9% during January.

Overall, year-on-year, retail sales grew by 13% amid a whopping 38% increase in gasoline station sales while clothing also jumped 21.9%. The worst inflation in 40 years has been a key element in the same period as it has pushed retail sales numbers.

Matthew Shay, president of the National Retail Association (NRA) said, “While the year ahead has challenges with inflationary pressures, labor shortages, COVID-19 impacts and uncertainty related to international tensions in Russia and China, today’s numbers show that despite these concerns, consumers are spending and the economy remains in good shape.”

Updated on

Sign up for ValueWalk’s free newsletter here.


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!