Retail sales in advance for sixth month in December (AP) (14-01-2011)

WASHINGTON – Retail sales rose for a sixth month in a row in December with sales in autos and furniture the biggest gainers. The increases lifted sales activity for the year by the largest amount in more than a decade.

Sales rose 0.6 percent last month to a level of $381 billion, according to the Commerce Department. The gain boosted retail sales 13.5 percent above the recession low hit in December 2008.

The string of increases pushed sales for all of 2010 up 6.7 percent, the largest annual increase since 1999.

Gains in retail sales show more money being spent by the consumers and according to the data, the economic growth will be strong this year.

But the gains last month were smaller than the previous two. Retailers began their promotional efforts much earlier this year, which may have dampened last month's sales. A huge snowstorm in the Northeast after Christmas also cut into demand.

Auto sales rose 1.1 percent last month, better than the 0.2 percent gain in November while sales at department stores dropped 1.9 percent and were down 0.7 percent at general merchandise stores. The December declines in activity compared to big gains in November.

Sales at gasoline stations rose 1.6 percent after a 3.8 percent jump in November.

The holiday shopping season accounts for as much as 40 percent of annual revenue and profits for retailers.

Source: AP