Retail sales make surprising jump in January

The data comes from the Commerce Department and, according to the report, one area of sales that had a good month may surprise you ... automobiles. January was the first time since last August that sales at automobile dealerships and parts stores posted a gain, with an increase of 1.6%.

The positive January sales data could not have come at a better time for retailers, who are still coping with a horrible month in December. Previous data showed that December had a 2.7% decline in sales, but that figure was adjusted to show the actual drop in December sales was 3.0%. December was the worst holiday shopping month going back to at least 1969.

Understandably, some analysts are not too sure what to make from today's report. We have been hearing some conflicting news lately. Retailers have not been showing the increases that today's report indicates, and the major automakers definitely published some weak January sales figures earlier this month. So, some are taking today's report with a grain of salt until we can see the actual data behind the numbers.

For example, Scott Hoyt, the senior director of consumer economics with Moody's Economy.com, was quoted as saying that "these numbers are a little puzzling to me," and that the results go against all the data that we have been given so far by retailers.

As we saw with the December sales figures, these monthly reports can be adjusted, and it is definitely possible that the January figures will move lower next month. Until we see a revised number it will be a bit difficult to really celebrate this month's report, but at least for now the market's have something positive to focus on.

A few of the really strong sectors besides auto sales were electronics, clothing, food and beverage, and gasoline.

And on the other side of the coin, sales were lower for furniture, building materials and sporting goods.