US January retail sales flat

US January retail sales were unexpectedly flat as motor vehicle, gasoline and electronics sales dipped sharply in the post-holiday…

US January retail sales were unexpectedly flat as motor vehicle, gasoline and electronics sales dipped sharply in the post-holiday season after a December that was stronger than originally indicated, a Commerce Department report showed today.

Excluding the volatile automotive sector, January retail sales rose 0.3 per cent, an advance which failed to meet analysts' expectations and was considerably lower than the upwardly revised 1.3 per cent gain in December, originally reported as a 1 per cent gain.

December's overall sales data also was revised upward to 1.2 per cent from an originally reported 0.9 per cent.

November retail sales were revised downward to a 0.4 per cent gain from a previously reported 0.6 per cent gain, while October's decline of 0.2 per cent was unrevised.

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"Fundamentally, the headline January number is a little disappointing but that was offset by the upward revision in December.

January retail sales were up 2.3 per cent when compared with January 2006. US Treasury debt prices extended gains after the report, while US interest rate futures inched higher.