Retail sales surge 3.8% in January, much more than expected

Online shopping contributed the most on a percentage basis, with nonstore retailers seeing a gain of 14.5%. Furniture and home furnishing sales increased 7.2% while motor vehicle and parts dealers saw a 5.7% rise.

Food and drinking establishments, considered a barometer for the pandemic-era economy, saw sales dip 0.9% for the month despite the major escalation in Covid cases fueled by the omicron spread.

“Consumers say they are worried about inflation, but they continue to spend,” PNC chief economist Gus Faucher wrote. “Even taking into account the December decline, retail sales in recent months have been increasing much faster than prices, so households are purchasing larger volumes of goods and services, not just paying higher prices.”