U.S. retail sales jumped in January, reversing a six-month decline and surprising economists' expectations by recording the largest increase in 14 months. Analysts cautioned that the improvement is likely to be temporary, as higher gasoline prices and consumers purchasing discounted goods after the holidays helped last month's performance. The Commerce Department reported Thursday that January retail sales rose 1 percent, advancing for the first time in seven months, after declining by 3 percent in December. January's increase in retail sales was the biggest since November 2007. However, last month's retail sales were 9.7 percent below those of January 2008. The report showed strong increases in sales of automobiles and in general merchandise stores. Sales at gasoline stations jumped 2.6 percent last month, the biggest rise since June, while sales of autos and auto parts rose 1.6 percent. Total retail sales excluding autos still rose 0.9 percent. Internet and mail-order retailers saw sales rise 2.7 percent in January, while sales of food and beverages rose 2.1 percent. Despite January's surprising performance, many U.S. retailers last week reported sales declines for January. The Labor Department said retailers cut about 45,000 jobs last month as they closed stores and tried to preserve cash amid lower consumer spending.
