U.S. Retail Sales Unexpectedly Halt Six-Month Slide

Feb. 12 (Bloomberg) -- Sales at U.S. retailers unexpectedly halted a record six-month slide in January, an advance that may not be sustained as job losses climb.

The 1 percent increase followed a 3 percent drop the prior month, the Commerce Department said today in Washington. Excluding cars, the gain was 0.9 percent. Last month’s rise reflected higher gasoline prices and more spending on items including clothing and food.

“There were enough post-holiday sales to lure people into the stores; the question is whether that is sustainable -- and the answer is, obviously not,” said Tom Porcelli, a senior economist at Castlestone Management Ltd. In New York. A “collapsing’ job market means spending will deteriorate further, he said.

Separate figures today showed the number of Americans collecting unemployment benefits reached a record 4.8 million two weeks ago, reinforcing the threat to spending. Economists anticipate household purchases will tumble further in the first half of the year, underscoring the case for the $789 billion stimulus package under debate in Congress.

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