January retail sales trounce expectations

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Data: FactSet; Chart: Thomas Oide/Axios

A new report on January retail sales showed consumer spending was much better than expected early this year.

Driving the news: Last month’s retail sales trounced expectations, rising 3.8%. (Economists expected a 1.8% bump in January.) They dropped 2.5% in December.

Yes, but: Part of the jump is just because January prices rose 0.6%.

Why it matters: Consumption is 68% of the economy and Americans are still spending—inflation and Omicron be damned.

Sign up for our daily briefingMake your busy days simpler with the Axios AM and PM newsletters. Catch up on what’s new and why it matters in just 5 minutes.Catch up on the day’s biggest business storiesSubscribe to the Axios Closer newsletter for insights into the day’s business news and trends and why they matter.Sign up for Axios Pro RataDive into the world of dealmakers across VC, PE and M&A with Axios Pro Rata. Delivered daily to your inbox by Dan Primack and Kia Kokalitcheva.Sports news worthy of your timeBinge on the stats and stories that drive the sports world with the Axios Sports newsletter. Sign up for free.Tech news worthy of your timeGet our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.Get the inside storiesGet an insider’s guide to the new White House with Axios Sneak Peek. Sign up for free.Catch up on coronavirus stories and special reports, curated by Mike Allen everydayCatch up on coronavirus stories and special reports, curated by Mike Allen everydayWant a daily digest of the top Denver news?Get a daily digest of the most important stories affecting your hometown with Axios DenverWant a daily digest of the top Des Moines news?Get a daily digest of the most important stories affecting your hometown with the Axios Des Moines newsletter.Want a daily digest of the top Twin Cities news?Get a daily digest of the most important stories affecting your hometown with Axios Twin CitiesWant a daily digest of the top Tampa Bay news?Get a daily digest of the most important stories affecting your hometown with the Axios Tampa Bay newsletter.Want a daily digest of the top Charlotte news?Get a daily digest of the most important stories affecting your hometown with Axios CharlotteWant a daily digest of the top Nashville news?Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.Want a daily digest of the top Columbus news?Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.Want a daily digest of the top Dallas news?Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.Want a daily digest of the top Austin news?Get a daily digest of the most important stories affecting your hometown with the Axios Austin newsletter.Want a daily digest of the top Atlanta news?Get a daily digest of the most important stories affecting your hometown with the Axios Atlanta newsletter.Want a daily digest of the top Philadelphia news?Get a daily digest of the most important stories affecting your hometown with the Axios Philadelphia newsletter.Want a daily digest of the top Chicago news?Get a daily digest of the most important stories affecting your hometown with the Axios Chicago newsletter.Sign up for Axios NW ArkansasStay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reportersWant a daily digest of the top DC news?Get a daily digest of the most important stories affecting your hometown with the Axios DC newsletter.Expand chartData: FactSet; Chart: Thomas Oide/AxiosA new report on January retail sales showed consumer spending was much better than expected early this year. Driving the news: Last month’s retail sales trounced expectations, rising 3.8%. (Economists expected a 1.8% bump in January.) They dropped 2.5% in December.Yes, but: Part of the jump is just because January prices rose 0.6%. Why it matters: Consumption is 68% of the economy and Americans are still spending—inflation and Omicron be damned.

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