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US retail sales rebound sharply to increase 3.8% in January: Govt data

December retail sales revised to show steeper decline; core retail sales jump 4.8%

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(Photo: Bloomberg)

Reuters Washington
US retail sales rebounded sharply in January amid a surge in purchases of motor vehicles and other goods, but higher prices could blunt the impact on economic growth this quarter.

Data for December was, however, revised sharply lower, taking some shine off last month's spectacular performance.

Still, the report from the Commerce Department on Wednesday showed underlying strength in the economy ahead of anticipated interest rate hikes from the Federal Reserve starting in March.

"The strong rebound in January retail sales, though partly in response to last year's weak finish and inflated by higher prices, suggests consumers still have plenty in the tank

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