Retails sales tick up in January, as consumer confidence grows

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Retails sales tick up in January, as consumer confidence grows

Motor vehicle sales registered an increase of 0.9 percent on year. There was an upward revision in December sales to 1.0% from the originally reported rise of 0.6%.

US retail sales rose more than expected in January as households bought electronics and a range of other goods, pointing to sustained domestic demand that should bolster economic growth in the first quarter.

In a report, the U.S. Commerce Department said that retail sales rose 0.4% in January from the prior month, compared to expectations for a 0.1% increase.

Economists polled by Reuters had forecast retail sales ticking up 0.1 percent and core sales gaining 0.3 percent last month.

Sporting goods stores' sales increased 1.8%, and sales at health and personal care stores increased 0.7%. Retail trade sales alone increased 5.6% from a year ago, helped by double digit gains for non-store retailers and gasoline stations. The surge, pointing to a sustained domestic demand and improving economic prospects, will likely reflect economic growth in the first quarter, analysts say.

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Similarly, first quarter service provider orders were down 12 percent versus 6 percent growth in the same quarter previous year . As far as the numbers go, Cisco is reporting revenue of $11.6 billion down slightly from this time a year ago ($11.9 billion).

On a monthly basis, retail sales slid 1.9 percent from November, when it showed no variations.

Sales at clothing stores hiked 1 percent, the biggest jump in nearly a year. But online transactions remained flat, after soaring 1.9 percent in December.

Purchases at restaurants and bars climbed 1.4 percent.

Beyond motor vehicles, retail spending in January was mostly higher. As a result, economists expected a healthy rebound in January.

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