Total retail sales increased 3.0% month-over-month (consensus +1.7%) following an unrevised 1.1% decline in December. Excluding autos, retail sales jumped 2.3% (consensus +0.8%) following an upwardly revised 0.9% decline (from -1.1%) in December.
The key takeaway from the report is that consumers were spending freely on goods in January despite the ongoing inflation pressure; in fact, every single sales category showed a month-over-month increase, led by a 7.2% surge in sales at food services and drinking places.