The upbeat report from the Commerce Department on Wednesday showed sales rose 0.6% last month; economists polled by Reuters had forecast 0.4%.
The rise in sales was led by online retailers and clothing stores. Receipts at motor vehicles and parts dealers also accelerated.
Restaurants and bars, the only services component in the report, were unchanged. Economists view dining out as a key indicator of household finances.
Americans have maintained a healthy pace of spending thanks to a relatively strong labor market. Data this month showed strong employment and wage gains in December as well as a pick-up in consumer prices.
Wednesday's sales numbers prompted economists to upgrade their economic growth prospects for the fourth quarter ahead of the government's first GDP estimate for the period, which is due out next week.
The report also cast further doubt that the Federal Reserve would start cutting interest rates as soon as March.
Still, investors expect the central bank to cut rates at some point this year, and most economists have grown more confident the economy will avoid a recession.
