The latest retail sales numbers released solidify the claim that the U. S. economy is in recovery. There ere two positive signs as first, retail sales in January increased by 0.5% month-over-month and next inventories declined in December by 0.2%. The data shows consumer spending increased in January that despite high unemployment rates.

Rosalind Wells, Chief Economist for NRF (National Retail Federation) said, "We continue to see the economy show subtle signs of improvement. While the recovery still has a long way to go, we remain encouraged by the latest retail sales figures."

The NRF said the slight boost likely came from retailers offering special deals to entice shoppers who hit the stores with holiday gift cards. The economists said the biggest threat to the U. S. economy remains the reluctance of consumers to keep spending considering persistent unemployment scenario.

These numbers mean that the economy may in fact be recovering from worst recession in history as unemployment saw a dip in January dropping below double digits to 9.7 percent and given that consumer spending accounts for a whopping two-thirds of economic activity in U. S, a boost in retail sales is indeed a very good sign fuelling hopes of stronger economic growth in coming quarters.