Consumers flocked to spend their stimulus checks in January, sending retail sales up 5.3% for a month in a blockbuster start through 2021, according to a government report on Wednesday.
Economists polled by Dow Jones expected an increase of only 1.2%.
Excluding cars, sales rose 5.9%, also well above the 1% estimate, driven by an unexpected strength from the consumer.
A month after Congress approved an additional $ 900 billion stimulus package on top of the $ 2.2 trillion approved in early 2020, buyers were armed with $ 600 checks that they could use to buy a variety of Bought goods.
The surge in consumer spending came at a time when growth expectations were dampened in early 2021 as the economy continued to shake off the slowdown caused by the pandemic.
While most economists are slow to start the year, they expect the pace to accelerate later in the year as vaccination efforts spread and the Covid-19 albatross subsides.
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