January Spending Spree Has US Retail Sales Rising Most In Nearly Five Years

Tyler Durden's picture

Confirming that the US economy is indeed heating up considerably and the Fed is rapidly falling behind the curve, not only did today's blistering CPI  come in well ahead of expectations, printing at the fastest pace since 2013, with the core CPI coming in at a dangerously "overheated" 2.3%, above both expectations of a 2.1% print, and well above the Fed's target of 2.0%, but moments ago the Census Dept. released January retail sales data which showed that after a tepid holiday spending season, US consumers started off 2017 with a bang driven perhaps by optimism over Trump's new administration, as headline retail sales jumped 0.4% in the month, better than the 0.1% expected, after rising an adjusted 1.0% in December (up from 0.6%). Sales have now grown in every month since August last year.

Retail sales excluding autos rose by a blistering 0.8%, double the expected 0.4%, and also double the upward revised 0.4% in December, while the Control Group also rose 0.4%, more than the 0.3% expected, and in line with last month's 0.4% (the retail sales ‘control group’ excludes food services, automobile dealers, building materials and gasoline stations).

On an Y/Y basis, retail sales surged 5.6%, the biggest annual increase in nearly 5 years, since early 2012.

The figures indicate that the US consumer has been busy spending since Trump’s election in November, despite recent weakness in wages, which on a real basis have tumbled, prompting some to wonder how much longer can this spending spurt continue, especially in light of the surge in inflation, which rose 2.5% in january, the fastest rise in nearly 5 years.

A breakdown of key spending categories shows that virtually every retail spending subsector showed growth except for Motor Vehicles, which dipped 1.4% on the month, and miscellaneous store retailers, which were down 0.2% in January. Furniture and home furnishing stores, as well as Internet retailers were both unchanged on the month.

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John_Law's picture

Treasuries slipped quite a bit.

Takeaction2's picture
Takeaction2 (not verified) John_Law Feb 15, 2017 9:00 AM

Off Topic but important...

Oh Fuck Rand Paul just walked out of the meeting for Obamacare repeal.  This is not good.  He is right though...he is pissed.



And you know what....changing this fucker is going to hurt some people.  That is the way it is...

You either fix the healthcare system...or NOBODY has Healthcare...use that fucking narrative.

You can't cover all of the snowflakes.

redtie's picture

Irs just stated they were not going to enforce mandate...

John Law Lives's picture

Please stop using that name with that specific avatar.  If you want to keep the name, be decent and use another avatar.  I have been a member here for 6+ years.

hotrod's picture

Then why are all the major retailers closing stores?????????  Was Christmas awesome?

NugginFuts's picture

hell, even Amazon missed estimates. I, too, would like to know where the Super Store Mega Sales are coming from.

Pigeon's picture

You really shouldn't report on retail sales without printing consumer debt stats next to it, Tylers.

angry_dad's picture
angry_dad (not verified) Pigeon Feb 15, 2017 9:31 AM


Most gringos are now living in whoville

spend, spend, spend

Serfs Up's picture

"Buy the rumor, buy the news"

/Sign taped above a Fed cubicle next to a picture of Janet all covered in saliva from daily kisses

NugginFuts's picture

I'll admit it - I spent more on silver last month than I usually do. 

Sorry, guys. 

CJgipper's picture

Meanwhile, outdoor retailer chain gander mountain declared bankruptcy yesterday.

NugginFuts's picture

Bullish! As in, sales of discounted ammo will skyrocket at closeout!

silverer's picture

No kidding? Wow. The hits keep on coming!

baldknobber's picture

This story say sales are up the most in 5 years, the story under this one says prices are rising the fastest in 5 years. So actual purchasing is flat. They can paint this pig any color they want , but this economy is still a pig

angry_dad's picture
angry_dad (not verified) baldknobber Feb 15, 2017 9:30 AM

The skyrocketing price increases mask the colossal debt load  the average gringo now carries.


silverer's picture

The debt is a huge one. Nobody on TV talks much if at all about the consequences of the 11 trillion dollars Obama added to the national debt. The budget can no longer be balanced, even if everybody paid an income tax rate of 80%. Mathematically impossible now to pay off. It will end someplace, and I don't think it can go on much longer.

angry_dad's picture
angry_dad (not verified) Feb 15, 2017 9:29 AM

Happily, more gringos have signed up for a 7 year note on a new DEBT BOMB auto that they will never be able to pay off.

The usa already has over $1 TRILLION in car loans, over $1 trillion in student loans, and nearly the same amount carried in high interest credit cards.

Add in a real estate bubble, skyrocketing food and education costs and where does that leave the consumer?

Lets hope these folks have a job they can drive to and begin paying off this colossal debt bubble.



Rich Monk's picture

More private debt. What jackasses!

wholy1's picture

The Trump "short-time euphoria" dead-cat-bounce?