**MNI: 5 Things We Learned From January Retail Sales Data>

By Kevin Kastner, Sara Haire and Holly Stokes

     WASHINGTON (MNI) - The following are the key points from the 

January retail sales report from the Commerce Department released 

Wednesday: 

     - January retail sales were very weak, falling by 0.3%, well below 

the 0.2% gain expected by analysts and even further below the 0.3% gain 

expected by the whisper number. Motor vehicle sales dropped off in the 

month and sales outside of motor vehicles were much softer than 

expected. The data point to a softer PCE number for the first quarter. 

     - Even excluding the 1.3% fall in motor vehicle sales, retail sales 

ex auto were flat, much weaker than the 0.5% rise expected - this is 

unusual given analysts' history of underestimating. December headline 

sales were revised lower to a flat reading and are now up only 0.1% ex 

motor vehicle. November sales were also revised lower, but were still 

strong. 

     - January sales fell 0.2% ex. motor vehicle and gas, and were flat 

ex auto, building materials, gas and food services, suggesting the 

weakness was apparent even without the volatile categories. 

     - Gas station sales rose 1.6% (retail sales ex. gas fell 0.4%), but 

building materials plunged 2.4% and food services sales were flat. The 

other categories were mixed, with declines at health care stores, 

furniture, and sport goods stores offsetting gains at clothing stores 

and electronics store. Miscellaneous store retailer sales rose 1.6%. 

     - January total sales were virtually unchanged vs 4Q average at an 

annual rate and were up only 1.8% ex motor vehicles and up 1.2% ex 

autos, building materials, gas, and food services, suggesting a slow 

start for 1Q PCE. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$]