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 3 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

Jewish Temple, Catholic Church Vandalized in Fresno

DON'T MISS

Valley PBS’ Top 2 Executives Departing. Were Their Resignations a Surprise?

DON'T MISS

Unfiltered Clip: Insights from Dr. Trita Parsi on Navigating the Israel-Palestine Conflict

DON'T MISS

Hamas Is Sending a Delegation to Egypt for Further Cease-Fire Talks in the Latest Sign of Progress

DON'T MISS

President Joe Biden Calls Japan and India ‘Xenophobic’ Nations That Do Not Welcome Immigrants

DON'T MISS

DEA’s Marijuana Reclassification Could Revive California’s Struggling Pot Industry

DON'T MISS

How to Reclaim the Israel-Palestine Debate From the Radicals on Both Sides

DON'T MISS

US Airstrike Targeting Al-Qaida Leader in Syria Killed a Farmer, American Military Says

DON'T MISS

Today’s Campus Protests Aren’t Nearly as Big or Violent as Those of the Vietnam Era

DON'T MISS

Mike Yaz Homers at Fenway In Giants Win After Visit From His Hall of Fame Grandpa

UP NEXT

Valley PBS’ Top 2 Executives Departing. Were Their Resignations a Surprise?

UP NEXT

Hamas Is Sending a Delegation to Egypt for Further Cease-Fire Talks in the Latest Sign of Progress

UP NEXT

President Joe Biden Calls Japan and India ‘Xenophobic’ Nations That Do Not Welcome Immigrants

UP NEXT

DEA’s Marijuana Reclassification Could Revive California’s Struggling Pot Industry

UP NEXT

How to Reclaim the Israel-Palestine Debate From the Radicals on Both Sides

UP NEXT

US Airstrike Targeting Al-Qaida Leader in Syria Killed a Farmer, American Military Says

UP NEXT

Today’s Campus Protests Aren’t Nearly as Big or Violent as Those of the Vietnam Era

UP NEXT

Valley Children’s Gets ‘Historic’ Gift to Boost Cancer Treatments. How Big Is It?

UP NEXT

Californians Are Protecting Themselves from Wildfire. Why Is There an Insurance Crisis?

UP NEXT

Family Fun, Community Events Highlight Cinco de Mayo Weekend in Fresno

Hamas Is Sending a Delegation to Egypt for Further Cease-Fire Talks in the Latest Sign of Progress

5 hours ago

President Joe Biden Calls Japan and India ‘Xenophobic’ Nations That Do Not Welcome Immigrants

5 hours ago

DEA’s Marijuana Reclassification Could Revive California’s Struggling Pot Industry

5 hours ago

How to Reclaim the Israel-Palestine Debate From the Radicals on Both Sides

6 hours ago

US Airstrike Targeting Al-Qaida Leader in Syria Killed a Farmer, American Military Says

6 hours ago

Today’s Campus Protests Aren’t Nearly as Big or Violent as Those of the Vietnam Era

6 hours ago

Mike Yaz Homers at Fenway In Giants Win After Visit From His Hall of Fame Grandpa

6 hours ago

Lagging Revenue Drives California Budget Deficit as Deadline Nears

7 hours ago

Valley Children’s Gets ‘Historic’ Gift to Boost Cancer Treatments. How Big Is It?

Californians Are Protecting Themselves from Wildfire. Why Is There an Insurance Crisis?

7 hours ago

Jewish Temple, Catholic Church Vandalized in Fresno

Fresno police are investigating an incident of flyers posted on the exterior windows of Temple Beth Israel. The flyers appear to be religiou...

1 hour ago

1 hour ago

Jewish Temple, Catholic Church Vandalized in Fresno

Entertainment /
4 hours ago

Valley PBS’ Top 2 Executives Departing. Were Their Resignations a Surprise?

Video /
4 hours ago

Unfiltered Clip: Insights from Dr. Trita Parsi on Navigating the Israel-Palestine Conflict

5 hours ago

Hamas Is Sending a Delegation to Egypt for Further Cease-Fire Talks in the Latest Sign of Progress

5 hours ago

President Joe Biden Calls Japan and India ‘Xenophobic’ Nations That Do Not Welcome Immigrants

5 hours ago

DEA’s Marijuana Reclassification Could Revive California’s Struggling Pot Industry

6 hours ago

How to Reclaim the Israel-Palestine Debate From the Radicals on Both Sides

6 hours ago

US Airstrike Targeting Al-Qaida Leader in Syria Killed a Farmer, American Military Says

MENU

CONNECT WITH US

Search

Send this to a friend