The spending over Christmas was better than had been predicted
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US retailers saw their sales pick up in December - as shoppers continued spending in the holiday season despite a slowing economy.
Commerce Department figures showed takings were 0.9% greater than the same month in 2005 - higher than most analysts were expecting.
The size of the December rise - the crucial holiday season for retailers - was the biggest since July.
The biggest increase came in electronic shops, with demand too for furniture.
Aside from electronics, which rose 3%, motor vehicle sales were up 0.3% after remaining flat in November.
However the impact of increased sales at petrol stations - up 3.8% - meant that the overall figure was "flattered", said Keith Guiles of Capital Economics.
'Merry holiday'
The data went against concern aired by retailers in December that spending had not been as strong as in previous years.
"It appears that households have had a merry holiday spending money, despite what the retailers may have been claiming," said Naroff Economic Advisors analyst, Joel Naroff.
The willingness to spend comes despite an interest rate of 5.25% and a slowdown in the housing market.
Lower oil prices have helped in giving consumers more money to spend, while December's labour market grew by 167,000, putting more money into the pockets of consumers.
Analysts say the latest data makes the chance of the Federal Reserve cutting interest rates in the immediate future unlikely.
But Jonathan Said of the Centre for Economics and Business Research (CEBR) said that "whilst the US is proving to have posted a positive end to 2006, following the economic slowdown earlier in the year, our view remains that the US will undergo a soft patch through 2007".
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