WASHINGTON DC, United States

CONSUMERS bought more from retailers for a seventh straight month in January. But snowstorms limited the spending gains expected from workers with more money on their pay cheques from a Social Security tax cut.

Retail sales rose 0.3 per cent last month to US$318.6 billion, the Commerce Department said yesterday. Demand rose at department stores, electronic stores and auto dealerships. Sales have risen more than 14 per cent from the recession low in December 2008.

Americans spent less at restaurants and on clothing while paying higher prices for gas. Stuart Hoffman, an economist at PNC Financial, said harsh weather played a role in limiting the sales gains. But he said he remained optimistic that sales will continue to rise and fuel the economy in the coming months.

“There is a huge amount of pent-up demand waiting to be unleashed,” Hoffman said. “The only missing ingredient for a sustained consumer rally is job creation.”

Auto sales rose 0.5 per cent last month after having increased 1.5 per cent in December. Excluding autos, retail sales increased 0.3 per cent, matching the December increase.

Sales at department stores gained 0.5 per cent. A broader general merchandise category, which includes big retail chains such as Walmart, surged 0.8 per cent.

Part of the overall retail sales gain reflected higher gasoline prices. Sales at gasoline service stations climbed 1.4 per cent. Excluding the rise at gas stations, retail sales would have risen 0.2 per cent last month.

Sales weakened at specialty clothing stores, furniture stores and hardware stores but increased at health care stores and food stores. The increase in grocery store sales was likely aided by rising food prices.

A separate report Tuesday pointed to further strength in manufacturing, a consistently strong sector in recent months. The Empire State Manufacturing Survey showed that conditions for New York manufacturers are improving. The survey’s index of business conditions rose to an eight-month high.

AP