US retail sales rebound in January on auto sector boost

WASHINGTON — Retail sales in the United States rebounded in January, said government data released on Wednesday, on improving auto supply while policymakers watch for signs that consumer demand is cooling in the longer run.

The US central bank has been working to ease demand as policymakers try to rein in stubborn inflation, raising interest rates rapidly over the past year.

While there have been signals that the effects of policy are rippling across sectors including previously resilient consumer spending, the latest data could spark concern.

Sales bounced by 3 per cent last month to $697 billion after two months of contraction, said a Commerce Department report on Wednesday, markedly higher than analysts expected.

Sales at auto and other vehicle dealers provided a boost, jumping 6.4 per cent from December to January.

Also robust were sales at department stores, which surged 17.5 per cent, while that at restaurants and bars spiked 7.2 per cent, the report said.

Officials are looking for indications that consumers are pulling back, as they consider when to halt their campaign of rate increases.