U.S. retail sales dipped 0.3 percent in January as automobile sales fell sharply, but purchases outside the volatile car sector gained a healthy 0.6 percent, a government report showed on Tuesday.

While seasonally adjusted retail sales were the weakest since a matching 0.3 percent drop in August, the gain outside of autos marked the strongest rise since October and surpassed Wall Street expectations for a 0.4 percent climb.

Auto sales, which account for nearly a quarter of overall retail sales, have swung widely in recent months as incentives to buy new cars were offered, then retracted.

"As soon as manufacturers try to scale back incentives to improve profitability, sales fall precipitously, forcing manufacturers to reinstate them," said Paul Ashworth, senior international economist at Capital Economics in London.

The Commerce Department's report said sales of cars and parts fell 3.3 percent in January, partly reversing December's incentive-fueled 4.0 percent surge.

Healthy demand at clothing and general merchandise stores, and gas stations offset declines in sales of furniture, electronics and appliances, and building materials.

Analysts said the data showed consumer spending -- while slowing from 2004's robust pace -- was on a solid footing and economic growth off to a good start in 2005.

Two reports, also on Tuesday, on chain store sales in early February confirmed Americans were still shopping.

"We continue to see healthy gains but nothing (like) what we saw in the second half in 2004," said Parul Jain, deputy chief economist at Nomura Securities International in New York. "It is consistent with our expectations that the first-quarter consumer spending would slow to 3.00 percent-3.50 percent."

(Agencies)

dip : to drop slightly （微降）

incentive : a positive motivational influence（動機）