Retail Sales Gain in January
By The Associated Press
WASHINGTON (AP) -- Post-holiday discounts
drew Americans to department stores and
clothing shops in January, helping to produce
a modest 0.2 gain in retail sales after a big
increase the month before.
The increase reported today by the Commerce
Department, to a seasonally adjusted $232
billion, was in line with economists'
expectations. It followed a large 1 percent
gain in December and dovetailed with their
belief that robust economic growth at the end
of 1998 is carrying over into early 1999.
Conditions remain bright for continued strong
sales. Unemployment held at a 29-year low of
4.3 percent in January. Interest rates remain
low, stock prices high and inflation
contained.
In a sign the supply of jobs remains
plentiful, the Labor Department said the
number of Americans filing first-time claims
for unemployment checks dropped by 13,000
last week to a seasonally adjusted 281,000,
the lowest level since July 1997.
A four-week moving average of claims, which
smoothes fluctuations in the volatile data,
fell by 19,750 to a four-month low of
297,750.
While the overall increase in sales was
relatively muted, sales at department stores
and other general merchandisers soared 1.5
percent, the biggest increase in 11 months.
In a separate report earlier this month, big
discount chains such as Wal-Mart, Target and
Kmart recorded the strongest gains.
Clothing, shoe and accessory shops reported a
1 percent increase in January, and drug
stores, an 0.8 percent advance.
Meanwhile, auto sales rose 0.2 percent on top
of a big 2.2 percent jump in January.
Receipts at building-supply and garden
centers were unchanged after a healthy 1.9
percent gain in December.
Furniture sales fell 0.4 percent, the worst
performance in nine months. They were strong
through much of 1998, helped by spillover
from record home sales.
Sales also fell at food stores, 0.5 percent;
gas stations, 0.5 percent, reflecting the
lowest gasoline prices in more than a decade;
and restaurants and bars, 0.2 percent.
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