US sales hit as consumers cut back

Retail sales in the United States rose less than expected in January as consumers cut back on car purchases and did less online shopping, figures yesterday revealed.

Total retail sales increased just 0.4 per cent after being flat in December, the US commerce department said. Economists had forecast sales climbing 0.7 per cent last month.

The government had initially estimated that sales rose 0.1 per cent in December, and yesterday it also revised downward its reading for retail sales in November. The revisions suggest consumers did not spend as much as previously thought during the holiday shopping season.

Sales of cars and car-parts dropped 1.1 per cent, while shopping at “non-store retailers”, a category dominated by online sales, also fell 1.1 per cent, the biggest decline since March 2009.