US retail sales geared up in January as consumers flocked to stores and restaurants amid unseasonably warm weather in large areas of the country, government data showed Tuesday.

US retail sales picked up in January (Photo: AFP/File, Mark Ralston)

Retail sales rose 0.4 percent from December, the Commerce Department said, the biggest gain since October.

The increase was only half as large as analysts expected. The department revised downward its estimate of a 0.1 percent rise in December from November to virtually unchanged.

"After a sluggish holiday shopping season, households went into the stores to spend those gift cards and get the deals on leftover holiday goodies," said Joel Naroff of Naroff Economic Advisors.

"This was a strange report in that overall sales were less than expected and the details really didn't provide any clue to what the consumer is thinking."

The data showed general merchandise stores rang up the sharpest sales rise, at 2.0 percent.

Sales at food and beverage stores rose 1.3 percent.

Excluding auto sales, retail sales were up a stronger 0.7 percent in January, according to the data, which is not adjusted for price changes.

Auto sales fell 1.1 percent from December.

"It looks like fleet sales -- sales to rental car fleets or other corporate fleet car buyers -- must have been strong and we will see those sales in GDP (gross domestic product) investment accounts," said Robert Brusca at FAO Economics.

Online retailers also saw a 1.1 percent dropoff in sales, while health and personal care sales slipped 0.3 percent.

But Naroff pointed out that the strong 0.7 percent rise in ex-auto retail sales "sets a solid base for first-quarter consumption growth, which I guess is pretty good."

Analysts noted the improving labor market picture, with unemployment falling in January to a nearly three-year low of 8.3 percent and wages rising, as potential fuel for higher consumer spending.

Yet experts cautioned that the economy's sluggish recovery from recession would continue to restrain retail sales.

"Growth will continue, at least on a trend basis, but remain very modest early in the year as the European recession and reduced fiscal stimulus limit job growth," said Scott Hoyt at Moody's Analytics.