US retail sales surged 2.3 per cent in January to nearly triple the expected increase.
Excluding demand for cars and parts, retail sales were up 2.2 per cent last month - the largest monthly gain in more than six years, the US Commerce Department said.
Both overall sales and sales outside the car sector were far stronger than Wall Street had expected.
Economists had forecast a 0.8 per cent overall increase and a 0.7 per cent gain excluding cars. The higher-than-expected sales growth in January was offset slightly by a downward revision to December's data.
Sales were up just 0.4 per cent in December, rather than the initially reported 0.7 per cent gain. The rise in sales outside the auto sector was unrevised at 0.2 per cent in December.
Sales of motor vehicles and parts surged 2.9 per cent in January, building on December's 1.2 per cent gain.
Demand was firm across nearly all major retail categories in January. Furniture sales rose 3.7 per cent, electronic and appliance sales climbed 2 per cent, and building material and garden equipment sales surged 3.4 per cent.
Sales of clothing advanced 4.2 per cent, the largest gain since October 2002. Business was also brisk at restaurants and bars, where sales were up 3.2 per cent, though grocery store sales grew just 0.2 per cent, the report showed.