By Jeffry Bartash
WASHINGTON (MarketWatch) - U.S. retail sales barely grew in January, suggesting a tax increase at the beginning of the year constrained consumers. Sales rose a seasonally adjusted 0.1% last month, or by 0.2% excluding the auto sector, the Commerce Department said Wednesday. Economists surveyed by MarketWatch expected retail sales to be unchanged overall and up 0.1% minus autos. The auto sector accounts for about one-fifth of total sales and can obscure broader trends in the retail segment. Last month, sales rose at Internet retailers, department stores and general-merchandise outlets. Receipts were lower for auto dealers, drug stores, and companies that sell home furnishings and clothing. Retail sales are a good proxy for how fast the U.S. is growing, though economists look at longer-term trends because the monthly data is volatile and subject to sharp revisions. The increase in sales for December was unrevised at 0.5%, while sales in November were revised up a notch to a 0.5% gain. In all of 2012 retail sales climbed 4.4%, more than twice the rate of consumer inflation.
