U.S. retail sales surged 4.8% year-over-year in January, rising to $668 billion, setting the stage for unexpectedly strong retail growth in 2025.

New data out Friday showed retail sales declined more than expected in the first month of 2025. Headline retail sales fell 0.9% in January, more than the 0.2% decline economists had expected, according to Bloomberg data.

According to a Friday U.S. Census Bureau report, retail sales for January were down 0.9% from the December. But total sales for November 2024 - January 2025 were up 4.2%.