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Retail sales jump 3% in January, smashing expectations despite inflation increase



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Sales at retailers rose far more than expected in January as consumers persevered despite rising inflation pressures.Advance retail sales for the month increased 3%, compared with expectations for a rise of 1.9%, the Commerce Department reported Wednesday. Excluding autos, sales rose 2.3%, according to the report, which is not adjusted for inflation. The ex-autos estimate was for a gain of 0.9%.related investing news Food services and drinking places surged 7.2% to lead all major categories. Motor vehicle and parts dealers increased 5.9%,while furniture and home furnishing stores saw a rise of 4.4%.Even with a 2.4% increase in gas prices, receipts at service stations were flat. Online retailers saw an rise of 1.3%, while electronics and appliances stores increased 3.5%.No categories saw a decline, following a December in which sales fell 1.1%.On a year-over-year basis, retail sales increased 6.4%, which was exactly in line with the consumer price index move reported Tuesday.Markets moved lower after the news, with major indexes slightly lower in morning trade.Other economic news Wednesday showed that industrial production was flat in January, compared to the estimate for a 0.4% gain, according to Fed data.While manufacturing input rose 1% and mining production increased 2%, utilities declined 9.9%, likely owing to an unseasonably warm beginning to the year. Also, capacity utilization declined 0.1 percentage point to 78.3%, below the 79% estimate.”The monthly reports on industrial production, retail sales, and jobs were generally better than expected and point to a pickup in economic activity in early 2023 after a soft patch in late 2022. The Fed will read recent activity reports as supporting p …

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