US retail sales jumped a more-than-expected 1.2% in December, but first-time jobless claims posted a surprise climb and import prices dipped more than anticipated, government reports showed today.
The rise in retail sales in December was fueled by strong sales at car dealers, furniture stores and on-line retailers, a Commerce Department report said. Retail sales in all of 2004 jumped 8%, the biggest gain since 1999.
Excluding cars, which can swing sharply from month to month, retail sales rose 0.3%, slightly less than expected. In December, retail sales excluding cars grew 8.6%, from a year ago.
Analysts were expecting a 1% rise in December retail sales and a 0.4% gain excluding cars.
November sales rose 0.1%, with sales excluding cars up a revised 0.4%, originally reported up 0.5%.
Sales of motor vehicles and parts in December jumped 4.3%, while furniture stores reported a 2.2% gain. Non-store retailers such as on-line vendors and mail order catalogs showed a 1.9% rise in sales.
Economists view retail sales as a dominant component in consumer spending, which in turn makes up two-thirds of US economic output.
Meanwhile, the number of Americans filing initial claims for jobless pay grew unexpectedly last week to 367,000, the highest since late September, the Labour Department reported. However, the number of those continuing to file claims fell sharply to their lowest level since mid-2001.
A separate Labour Department report showed that the price of goods imported into the US fell by a much more than expected 1.3% in December. The large reduction in import costs was driven by a steep fall in the price of petrol products, which dived 11.5% after a revised 5.7% decline the previous month.
