Breaking news from from Marketwatch:

U.S. retailers rang up their largest increase in sales in more than a year in January, rebounding strongly after six straight months of sharp declines, the Commerce Department reported. Retail sales increased 1% on a seasonally adjusted basis in January, the first increase since June and the largest percentage increase since November 2007. The gain was unexpected, with economists surveyed by MarketWatch looking for a decline of 0.4%. Retail sales are down 9.7% in the past year. The government data showed most retail sectors enjoyed increased sales in January compared with December.

That’s particulary good news considering The AP’s previous report on the expected numbers:

Economists surveyed by Thomson Reuters expect the figures to show a seventh straight monthly drop in January reflecting the recession, thousands of job losses and falling home prices.

The Reuters news service said the increase in sales was likely boosted by post-holiday discounts and that is provides “a glimmer of hope for the recession-hit economy.”

The Commerce Department said total retail sales rose 1 percent, advancing for the first time in seven months, after slumping by a revised 3 percent in December, previously reported as a 2.7 percent decline.

January’s increase in retail sales was the biggest since November 2007.

Excluding motor vehicles and parts, sales were up 0.9 percent after a revised record 3.2 percent decline in December, previously reported as a 3.1 percent drop, the department said.

The January rise was the highest reading since May 2008.

Analysts polled by Reuters had forecast January retail sales to fall by 0.8 percent. Excluding motor vehicles, sales had been predicted to drop by 0.5 percent.

Gasoline sales jumped 2.6 percent, their biggest gain in seven months, after sliding 15.6 in December. Sales of building materials fell 3.2 percent after dropping 2.3 percent in December.