US retail sales surpass forecasts in December

US retail sales jumped a more-than-expected 1.2 per cent in December, the government said today.

US retail sales jumped a more-than-expected 1.2 per cent in December, the government said today.

Retail sales in all of 2004 jumped 8 per cent, the biggest gain since 1999, the US commerce department said, as car dealers, furniture stores and online retailers reported strong sales.

Excluding autos, which can swing sharply from month to month, retail sales rose a less-than-expected 0.3 per cent. On a 12-month basis, retail sales excluding autos grew 8.6 per cent. Analysts were expecting a 1.0 per cent rise in all sales and a 0.4 per cent gain excluding autos.

November sales rose 0.1 per cent, with sales excluding autos up a revised 0.4 per cent, originally reported up 0.5 per cent. Sales of motor vehicles and parts in December jumped 4.3 per cent, while furniture stores reported a 2.2 per cent gain.

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Non-store retailers such as online vendors and mail order catalogues showed a 1.9 per cent rise in sales.

Economists view retail sales as a dominant component in consumer spending, which in turn make up two-thirds of US economic output.