Consumers flocked to issue their stimulus vouchers in January, pushing retail sales for the month up 5.3% in a blockbuster hit through 2021, according to a government report Wednesday.
Economists polled by Dow Jones expected an increase of just 1.2%.
Excluding cars, sales were up 5.9%, also well above the 1% estimate in evidence of unexpected consumer strength.
A month after Congress approved an additional $ 900 billion stimulus package on top of the $ 2.2 trillion previously approved in 2020, shoppers were armed with $ 600 checks they used to buy a variety of goods.
The jump in consumer spending came at a time when growth expectations had been dampened in early 2021 as the economy continued to shake off the pandemic slowdown.
Spending gains were broad-based, with each major category showing increases.
Electronics and appliances were up the most, up 14.7% during the month, while furniture and home furnishing stores were up 12% and online spending at non-retail chains was up 11%. Even food and beverage outlets, the worst affected by the pandemic, rose 6.9%.
While most economists are starting the year slowly, they expect the pace to pick up later in the year as vaccination efforts spread and the Covid-19 albatross declines.
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