US retail sales rose in 2010

Retail sales in the U.S. rose marginally in December as well as for the year 2010, according to a report by the U.S. Commerce Department.

Adjusted retail and food services sales rose 0.6 percent in December to $380.9 billion from the previous month and 7.9 percent from the same period last year.

Total sales for the year were up 6.6 percent from 2009, the report said.

Retail trade sales rose 0.7 percent during the month, while retail sales, excluding sales of motor vehicles and parts, were up 0.5 percent.

Together, December's US retail sales and consumer price reports suggest that real consumption growth accelerated to 3.8% annualised in the fourth quarter, from 2.4% in the third, Paul Ashworth, an economist at Capital Economics, said in a note.

This would be the strongest quarterly growth in consumption for four years, he added, stating that we are still skeptical that this faster pace of growth can be sustained beyond the first quarter, however, even after allowing for the new reduction in payroll taxes.