FX.co ★ U.S. Retail Sales Surge as Redbook Index Hits 7.1% in January

In a surprising turn of events, the U.S. retail sector has shown remarkable resilience with the latest Redbook index revealing a significant growth to 7.1% year-over-year as of January 27, 2026, up from a 5.5% increase in the previous month. This index, which provides an early indication of retail sales trends, underscores a robust consumer spending pattern despite prevailing economic uncertainties.

The data, which measures changes in retail sales for small to medium-sized general merchandise retailers, points to a positive economic momentum as consumers continue to drive market activity. January's sharp increase suggests heightened consumer confidence and spending during this period, outpacing the prior month’s year-over-year performance.

Market analysts are now re-evaluating their economic forecasts amidst this data, as the elevated retail activity could signal potential upward trends for the broader economic landscape in the coming months. As stakeholders digest this significant development, the focus will be on understanding the factors that contributed to this spending increase during this traditionally less active month for retail sales.