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    US Retail Sales Surpass Market Expectations, Rebound from Holiday Shopping Slowdown


    Retail Sales in the US rose by 3%, surpassing the market expectation of 1.8%, according to the US Census Bureau's report on Wednesday.[0] This reading followed December's decrease of 1.1%.[0] The total sales for the November 2022 through January 2023 period were up 6.1% from the same period a year ago, while retail trade sales were up 2.3% from December 2022 and 3.9% above last year.[1]

    The US Dollar gathered strength with the initial reaction and the good news was supported by the Mastercard SpendingPulse insights.[0] Jewelry sector also experienced growth of 6.5% after nine months of stagnant growth, potentially reflecting early Valentine’s Day shopping.[2] Credit and debit card spending per household was up 5.1% over the year in January, compared to just 2.2% in December, which indicates a rebound from a lackluster holiday shopping season.[3]

    According to the report, US consumer spending has stayed strong even after a deceleration in 2022, likely due to a sturdy labor market, wage increases, and indications that inflationary pressures could be improving.[4] The primary factor driving spending decisions is income – not just income today but the expectation for income tomorrow – and the strength in the labor market remains a critical support for consumer purchasing power as evidenced by the Mastercard SpendingPulse insights.[5]

    It is expected that the blowout report will highlight the Federal Reserve's commitment to continuing to increase interest rates in order to reduce demand and control inflation.[6] This is a developing story, so please check back for updates.[7]

    0. “US: Retail Sales rise by 3% in January vs. 1.8% expected” Forex Factory, 15 Feb. 2023,

    1. “Retail sales surged in January, putting yet more pressure on the Fed” CNN, 15 Feb. 2023,

    2. “Retail Sales Grew By 8.8% In January: Report 02/10/2023” MediaPost Communications, 10 Feb. 2023,

    3. “Consumer Spending Shows Signs of a Rebound” Investopedia, 10 Feb. 2023,

    4. “US retail sales grow by more than expected in January” ShareCast, 15 Feb. 2023,–12351462.html

    5. “MasterCard data is another sign that the consumer remains healthy” ForexLive, 10 Feb. 2023,

    6. “Retail sales surged in January, putting yet more pressure on the Fed”, 15 Feb. 2023,

    7. “Retail sales surge 3% in January despite stubbornly high inflation” Fox Business, 15 Feb. 2023,

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