US retail sales surges 5.3% in January, records seven month high

The value of overall sales increased 5.3% from the prior month after a 1% decline in December, Commerce Department figures showed Wednesday. All major categories showed sharp advances.

US retail sales surged in January by the most in seven months, suggesting fresh stimulus checks helped spur a rebound in household demand following a weak fourth quarter.

A customer shops at a Bunnings Warehouse store, operated by Wesfarmers Ltd., in Sydney, Australia, on Tuesday, Feb. 16, 2021. The retail conglomerate Wesfarmers is scheduled to release earnings on Feb. 18. Photographer: Brent Lewin/Bloomberg (Bloomberg)

The value of overall sales increased 5.3% from the prior month after a 1% decline in December, Commerce Department figures showed Wednesday. All major categories showed sharp advances.

Ahead of the report, the median estimate in a Bloomberg survey of economists called for a 1.1% monthly gain in retail sales.

A surge in Covid-19 cases curbed spending at year-end, but since then, virus cases have ebbed and states have started to ease some restrictions on businesses and activity. The ability to shop and eat out, paired with the latest round of $600 stimulus payments, helped drive spending in the month across a variety of categories.