"Retail sales are being driven by the improving confidence but also by decent income gains"
- Millan Mulraine, a senior U.S. strategist at TD Securities
U.S. retail sales grew less than expected January as vehicle purchases tumbled. Total retail sales rose 0.4 per cent the previous month from December, when sales stagnated, said the Census Bureau on Tuesday.
"I don't think there's anything here that really brings into question the fact that the economy has been improving," said Wayne Kaufman, chief market analyst at John Thomas Financial in New York.
"Consumers are being very picky at this point," said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia. "We saw aggressive retailer discounting and sharp price cuts in the new year. It bodes poorly for retailers' margins."
In a separate report, the Bureau of Labor Statistics said month-on-month import prices rose 0.3 per cent in January, after declining 0.1 per cent in December.
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