Consumers spent more in January

WASHINGTON — Americans rebounded from a weak holiday season and stepped up spending on retail goods in January. The latest government report on retail sales pointed to a slowly improving economy.

Retail sales rose at a seasonally adjusted 0.4 percent last month, the Commerce Department said Tuesday.

Consumers spent more on electronics, home and garden supplies, sporting goods, at department and general merchandise stores and at restaurants and bars. They also paid higher prices for gasoline.

The January retail sales figures were an improvement from December, which were revised downward to show a flat reading. Excluding autos, building materials and gasoline station sales, core retail spending jumped 0.7 percent.

The “retail sales data are better than they look, but they don’t suggest that consumption growth is about to set the economic recovery alight ,” Paul Dales, an economist at Capital Economics, wrote in a note to clients.

The government’s retail sales report is its first look each month at consumer spending, which represents 70 percent of economic activity. The positive data suggest that hiring gains have boosted confidence and are encouraging more people to spend.

The retail sales report shows consumers are managing to increase spending at the same pace they did late last year, despite only small gains in pay.

“The good news is that the strong January gain establishes that the consumer trend is not folding,” said Pierre Ellis, an economist at Decision Economics.

Retail sales have risen about 21 percent since hitting a recession low, and they are nearly 6 percent above their pre -recession high.

January sales might have been stronger if auto sales hadn’t dropped 1.1 percent. That was a surprise after most dealers reported sales increases last month.