Stimulus Checks Drove 6% Higher January Retail Spend, Electronics Up 14%
Government stimulus checks gave the U.S. economy an unexpected boost in January, said the National Retail Federation Wednesday, commenting on a U.S. Census Bureau report saying retail sales grew 5.9% from December and 7.4% year on year. Electronics and appliance…
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stores were up 14.7% month-over-month but down 4.1% year on year. Momentum from the holiday sales season carried over into January, said NRF Chief Economist Jack Kleinhenz, noting the lack of a usual spending falloff post-holiday; the increase was “even better than expected.” Consumers have “plenty of purchasing power,” said Kleinhenz: “Confidence is building thanks to the availability of COVID-19 vaccines and states and local governments are beginning to remove restrictions on economic activity." He expects consumer spending to build on the momentum. CEO Matthew Shay called January sales a “very strong start for consumers and retailers” as the NRF looks ahead to a “critical year curbing the global pandemic and strengthening our economic recovery.”