US consumer sentiment improved in early January as energy prices leveled, job conditions improved, and stocks rallied. In the world of retail, consumers chose to clothe themselves, their friends and family from head to toe as the holiday season comes to a close. As energy prices become more moderate, trips to the mall and other mass merchant retailers occurred more often, especially with the sales and values to be found. This month found consumers looking to spruce up the home, as home furnishings saw a pickup in traffic and sales. With the enactment of Medicare Part D, drug stores were very busy filling prescriptions, as well as the vanity chest and shower shelves, as customers picked up other needed items while waiting for their Rx's to be filled. All in all, the month was a positive one. Overall retailers reported better-than-expected sales in January, as shoppers armed with holiday gift cards and lured by mild weather returned to stores and malls in search of clearance and spring merchandise. Going forward, though, as consumers face higher interest rates, a cooling housing market and high energy costs in the months ahead, this surge will not last.