Americans rebounded from a weak holiday season and increased spending on retail goods in January, an encouraging sign for the strengthening economy.

Retail sales rose at a seasonally adjusted 0.4% last month, the Commerce Department said Tuesday. Consumers spent more on electronics, home and garden supplies and sporting goods at department and general merchandise stores and at restaurants and bars.

A second report Tuesday showed that companies restocked at a faster pace in December, a sign they expect consumers to step up spending.