US retail sales rise for third straight month in January

The US commerce department data released today showed the sharp wage growth and lower fuel prices led to a rise in consumption as represented by the advance retail sales number in January.

The headline figure rose 0.2%, compared to the expected rise to 0.1%. The December figure was revised higher to 0.2% from the negative reading.

Retail sales control group, which excludes autos, gas and building materials, rose 0.6%, the most since May, after falling 0.3% the month before. The control group figure is used to used to calculate gross domestic product.

The pickup in consumer spending, which accounts for 70% of the US economy, is likely to calm market nerves heading into the extended weekend.