Consumers rallied to spend their stimulus checks in January, sending retail sales for the month up 5.3% in a blockbuster starting in 2021, according to a government report on Wednesday.
Economists surveyed by the Dow Jones expected an increase of only 1.2%.
With the exception of motor vehicles, sales increased by 5.9%, also well before the 1% estimate in a display of unexpected strength from the consumer.
One month after Congress approved an additional $ 900 billion incentive package, in addition to the $ 2.2 trillion approved earlier in 2020, buyers were armed with $ 600 checks they they used to buy a variety of goods.
The jump in consumer spending came at a time when growth expectations in early 2021 were lowered as the economy continued to shake off the pandemic-induced slowdown.
Expenditure gains had a broad base, with each major category showing increases.
Electronics and home appliances grew the most, up 14.7% for the month, while furniture and home furniture stores rose 12%, and online spending at retailers without a store rose 11%. Even food and beverage facilities, which suffered the most during the pandemic, rose 6.9%.
While most economists start the year slowly, the pace is expected to increase later in the year as vaccination efforts spread and the Covid-19 albatross disappears.
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