U.S. consumer spending appeared to regain momentum in January as households increased purchases of a variety of goods, in a hopeful sign that economic growth was picking up after slowing to a crawl at the end of 2015.
The U.S. Commerce Department said on Friday retail sales excluding automobiles, gasoline, building materials and food services increased 0.6% last month after an unrevised 0.3% decline in December.
These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product. Economists had forecast core retail sales increasing 0.3% last month.
Growth in consumer spending, which accounts for more than two-thirds of U.S. economic activity, moderated in the fourth quarter. That, together with weak export growth because of a strong dollar, efforts by businesses to sell inventory and cuts in capital goods spending by energy firms, restrained GDP growth to a 0.7% annual pace.
