WASHINGTON — Sales at U.S. retailers rose less than forecast in January, reflecting an unexpected drop in purchases of automobiles.
The 0.4 percent gain reported by the Commerce Department on Tuesday in Washington was half the 0.8 percent median rise forecast by economists surveyed by Bloomberg News. Purchases excluding car dealers climbed 0.7 percent, more than projected and the biggest gain since March.
Retailers such as Target and Limited Brands topped analysts’ sales forecasts last month, when many companies offered incentives to bring back shoppers after holiday sales stagnated. Further gains in employment are needed to bolster wages and underpin confidence.
“Consumers are being very picky at this point,” said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott in Philadelphia. “We saw aggressive retailer discounting and sharp price cuts in the new year. It bodes poorly for retailers’ margins.”
Purchases were also revised down 0.1 percentage point in each of the prior two months — to unchanged in December and a 0.3 percent rise in November.
Business inventories in the United States rose less than sales in December, showing companies may keep restocking shelves and warehouses early this year. The 0.4 percent increase in stockpiles compared with a 0.7 percent jump in purchases that was the biggest since July, Commerce Department figures showed Tuesday.
Prices of imported goods rose 0.3 percent in January, reflecting higher costs for automobiles and petroleum, according to a report from the Labor Department. It was the second increase in the past six months, indicating little pressure in prices from overseas.
Nine of 13 major retail categories showed gains last month.
Industry figures showed purchases at Columbus, Ohio-based Limited climbed 9 percent, beating the average projection for a 2.7 percent gain from analysts surveyed by researcher Retail Metrics. Target, the second-largest U.S. discount retailer, posted a 4.3 percent increase in same-store sales, topping the 2.4 percent estimate.
Demand at auto dealers dropped 1.1 percent in January, the report showed, the biggest decline since May. The numbers ran counter to industry figures that showed sales improved.
