Please ensure Javascript is enabled for purposes of website accessibility
Latest Stimulus Checks Push Retail Sales Up More Than 5% in January
gvw_ap_news
By Associated Press
Published 4 years ago on
February 17, 2021

Share

Those $600 stimulus checks got Americans shopping again.

After three months of declines, retail sales soared a seasonally adjusted 5.3% in January from the month before, the U.S. Commerce Department said Wednesday. It was the biggest increase since June and much larger than the 1% rise Wall Street analysts had expected.

The $600 stimulus checks, sent out at the very end of last year, pushed people to buy new furniture, clothing and appliances.

Darryl Crum bought a new washing machine with his stimulus money, since his old one wasn’t spinning clothes well enough anymore. He chose a model that was made in America and bought it from a family-owned store instead of the major chain he usually gets appliances from.

“As I see it, the goal was to stimulate the economy,” said Crum, who is retired and lives in DeKalb, Illinois. “And I contributed.”

Three Prior Months Saw Sales Slump

How long spending will continue without more stimulus checks remains to be seen.

Retail sales slumped in the last three months of 2020 as stimulus money dried up, job growth was nonexistent and a surge in virus cases kept people away from stores during the critical holiday shopping season. In fact, the Commerce Department said Wednesday that December’s drop was actually larger than it first reported, revised to be down 1% instead of a decrease of 0.7%.

President Joe Biden is trying to push through a $1.9 trillion stimulus plan, which would include $1,400 in direct payments to most Americans. The U.S. job market is still weak: Employers added just 49,000 jobs in January after losing 227,000 jobs the month before, the first loss since April.

But economists expects stronger economic growth in the second half of this year as vaccines are more widely distributed and Americans are less fearful of catching the virus.

Over 20% Spending Jump at Department Stores

Besides strong sales at furniture and appliance stores in January, sales jumped an eye-popping 23.5% at department stores after slumping 3% in the last year. Online sales soared 11% and spending at restaurants, which have been hard hit by coronavirus restrictions, rose 6.9% last month.

“American shoppers blew the doors off retailers in January,” said Sal Guatieri, an economist at BMO Capital Markets, in a note to investors. “Many households treated themselves after a less-than-merry holiday season.”

Wednesday’s report covers about a third of overall consumer spending. It doesn’t include haircuts, hotel stays and other services, which have been badly hurt by the pandemic.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

US-China Tariff Talks to Continue Sunday, an Official Tells The Associated Press

DON'T MISS

Has America Given Up on Children’s Learning?

DON'T MISS

Could Trump Team Suspend Habeas Corpus to Expedite Deportations?

DON'T MISS

Two Teens Charged in Shooting Death of Caleb Quick

DON'T MISS

India and Pakistan Agree to a Ceasefire After Their Worst Military Escalation in Decades

DON'T MISS

Ukraine and Allies Urge Putin to Commit to a 30-Day Ceasefire or Face New Sanctions

DON'T MISS

Soviet-Era Spacecraft Plunges to Earth After 53 Years Stuck in Orbit

DON'T MISS

Tax the Rich? Slash Spending? Republicans Wrestle With Economic Priorities in the Trump Era

DON'T MISS

Israeli Airstrikes Kill 23 in Gaza as Outcry Over Aid Blockade Grows

DON'T MISS

Experts Call Kennedy’s Plan to find Autism’s Cause Unrealistic

UP NEXT

Has America Given Up on Children’s Learning?

UP NEXT

Could Trump Team Suspend Habeas Corpus to Expedite Deportations?

UP NEXT

Two Teens Charged in Shooting Death of Caleb Quick

UP NEXT

India and Pakistan Agree to a Ceasefire After Their Worst Military Escalation in Decades

UP NEXT

Ukraine and Allies Urge Putin to Commit to a 30-Day Ceasefire or Face New Sanctions

UP NEXT

Soviet-Era Spacecraft Plunges to Earth After 53 Years Stuck in Orbit

UP NEXT

Tax the Rich? Slash Spending? Republicans Wrestle With Economic Priorities in the Trump Era

UP NEXT

Israeli Airstrikes Kill 23 in Gaza as Outcry Over Aid Blockade Grows

UP NEXT

Experts Call Kennedy’s Plan to find Autism’s Cause Unrealistic

UP NEXT

Trump’s Trip to Saudi Arabia Raises the Prospect of US Nuclear Cooperation With the Kingdom

Two Teens Charged in Shooting Death of Caleb Quick

9 hours ago

India and Pakistan Agree to a Ceasefire After Their Worst Military Escalation in Decades

9 hours ago

Ukraine and Allies Urge Putin to Commit to a 30-Day Ceasefire or Face New Sanctions

9 hours ago

Soviet-Era Spacecraft Plunges to Earth After 53 Years Stuck in Orbit

9 hours ago

Tax the Rich? Slash Spending? Republicans Wrestle With Economic Priorities in the Trump Era

9 hours ago

Israeli Airstrikes Kill 23 in Gaza as Outcry Over Aid Blockade Grows

9 hours ago

Experts Call Kennedy’s Plan to find Autism’s Cause Unrealistic

9 hours ago

Trump’s Trip to Saudi Arabia Raises the Prospect of US Nuclear Cooperation With the Kingdom

10 hours ago

Oh Ohtani! Dodgers Star Hits 3-Run Homer in Late Rally Victory Over Diamondbacks

10 hours ago

Tariff Talks Begin Between US and Chinese Officials in Geneva

10 hours ago

US-China Tariff Talks to Continue Sunday, an Official Tells The Associated Press

GENEVA — Sensitive talks between U.S. and Chinese delegations over tariffs that threaten to upend the global economy ended after a day of pr...

3 hours ago

https://www.communitymedical.org/thecause?utm_source=Misfit+Digital&utm_medium=GVWire+Banner+Ads&utm_campaign=Branding+2025&utm_content=thecause
3 hours ago

US-China Tariff Talks to Continue Sunday, an Official Tells The Associated Press

5 hours ago

Has America Given Up on Children’s Learning?

8 hours ago

Could Trump Team Suspend Habeas Corpus to Expedite Deportations?

The Clovis Police Department identified two suspects they have arrested in connection with the murder of Caleb Quick, 18, at a Saturday, May 10, 2025, news conference. (GV Wire Composite)
9 hours ago

Two Teens Charged in Shooting Death of Caleb Quick

9 hours ago

India and Pakistan Agree to a Ceasefire After Their Worst Military Escalation in Decades

9 hours ago

Ukraine and Allies Urge Putin to Commit to a 30-Day Ceasefire or Face New Sanctions

9 hours ago

Soviet-Era Spacecraft Plunges to Earth After 53 Years Stuck in Orbit

9 hours ago

Tax the Rich? Slash Spending? Republicans Wrestle With Economic Priorities in the Trump Era

Help continue the work that gets you the news that matters most.

Search

Send this to a friend