Retail sales in the U.S. rose at a slower pace in January as an increase in payroll taxes took a bite out of consumers’ paycheques.
The 0.1% climb followed an unrevised 0.5% increase in December, Commerce Department figures showed today in Washington. The advance matched the median forecast of 80 economists surveyed by Bloomberg.
A two percentage-point increase last month in the levy that funds Social Security reduced take-home pay, countering some of the gains in household disposable income from an improving job market. At the same time, more employment, combined with higher property values and stock prices, supports consumers and adds traction to purchases that make up about 70% of the economy, a boon for retailers such as Gap Inc. and Target Corp.
Prices of goods imported into the U.S. rose in January for the first time in three months, led by more expensive fuel and building materials, a report from the U.S. Labor Department also showed today. The 0.6% gain in the import-price index followed a revised 0.5% decline in December that was larger than initially estimated.
Six of 13 major categories showed gains last month, led by a 1.1% jump at general merchandise stores that was the biggest gain since April 2011. Demand at sporting goods merchants and non-store retailers, which include internet outlets, also advanced.
Demand at auto dealers fell 0.1% in January from the prior month, in line with industry data issued earlier this month. Cars and light trucks sold at a 15.2 million annual rate in January after 15.3 million in December, according to industry trackers. Including November’s 15.5 million rate, auto sales over the past three months have been the strongest in five years.
Retail sales excluding autos increased 0.2% after rising 0.3% in December, today’s report showed. They were projected to rise 0.1%, according to a survey of economists.
