Retailers in the U.S. saw a smaller increase in sales during the last month of 2010 than had been expected, although annually growth was the highest in more than a decade, according to Financial Times. On Friday, the Commerce Department reported that retail sales rose 0.6% in December from the month before, which marked the sixth monthly increase in a row despite falling short of the 0.9% growth expected by economists. Excluding the volatile auto and gas components, retail sales were 0.4% in December, while annual sales growth rose 6.8% from the end of 2009, which is the most since 1999.

Economists were optimistic that the data was a sign of the strengthening of the economic recovery, with Michael Woolfolk of BNY Mellon Global Markets commenting, “The momentum will carry over into 2011.” According to The Wall Street Journal, economists have been lifting U.S. growth estimates as the economy transitions towards a recovery “driven by private domestic demand and rising exports,” said Wells Fargo. Economists expect to see 3.3% growth in the fourth quarter of 2010, and foresee similar or even better levels of growth throughout 2011.

Click here to read the story on retail sales from Financial Times.

Click here for coverage of economists outlook from The Wall Street Journal.