Retail sales in the United States unexpectedly climbed in January, given a boost by demand for cars and gasoline.

Meanwhile, U.S. business inventories grew a little more than expected in December as sales tumbled.

Retail sales increased by 0.3%, the U.S. Commerce Department said today. Sales went down an unrevised 0.4% in December.

Economists had called for a 0.4% decline in January retail sales.

U.S. sales of automobiles and parts increased by 0.6% in January. December sales had fallen 1.1%. Sales of all other retailers excluding auto and parts dealers increased in January by 0.3%; economists expected a 0.2% increase. Ex-auto sales in December had gone 0.3% lower, revised from a previously estimated 0.4% decrease.

January gasoline station sales increased by 2%. Gas sales were unchanged in December. Stripping away sales at gas stations, demand at all other retailers inched 0.1% higher in January.

Excluding gas and auto sectors, demand at other retailers last month was unchanged.

Separately, the Commerce Department reported that business nventories increased by 0.6% to a seasonally adjusted US$1.445 trillion. Inventories in November rose an unrevised 0.4%.

Wall Street was looking for inventories to move 0.5% higher during December. The 0.6% increase, paired with a sharp sales decline of 0.5%, indicated goods were piling up on store shelves because of weakened demand.