Dive Brief:

• Overall retail sales grew 0.2% in January, the third straight month of increases, according to the U.S. Commerce Department monthly sales report released Friday. Overall retail sales in December were revised up to a 0.2% gain from the previously reported 0.1%.

• Sales excluding automobiles, gasoline, building materials and food services rose 0.6% last month, beating expectations that ranged from a decline of 0.5% to a 0.4% rise, thanks to lower fuel prices that undercut gasoline sales although winter weather kept consumers eating in. 

• Apparel sales rose 0.2%, electronics and appliance sales rose 0.1%, and sporting goods and hobby stores sales dropped 2.1%. General merchandise sales grew 0.8%, the most since May, and online sales grew 1.6%, according to the Commerce Department. 

Dive Insight:

Apparel sales last month likely got a bump as retailers were finally able to sell some of that winter gear that sat on racks during the warm holiday season, though, as expected, the month’s winter storm kept people out of restaurants and bars.

The strong dollar and continued consumer wariness about the economy has muted spending this past quarter, though some growth in wages and a more confident labor market is finally helping drive some spending.

“Consumer fundamentals still look very strong,” BNP Paribas economist Bricklin Dwyer told Bloomberg.“We had really strong real incomes at the end of last year, and that’s going to feed through to consumption.”