Thread: US retail sales improving faster than expected

US retail sales improving faster than expected

By Alan Rappeport in New York



Published: April 14 2010 14:28 | Last updated: April 14 2010 14:28



US retail sales jumped in March, offering hope that consumers had begun doing their part to propel the economic recovery, official figures showed on Wednesday.



Separately, labour department data revealed that consumer prices remained muted last month, buttressing the Federal Reserve’s argument that its low interest rate monetary policy is stimulating growth without inflation.



“The latest consumer and inflation data fits perfectly with the recovery taking hold at a point where spare capacity is still holding down inflation pressure, providing considerable scope for policy flexibility from the Fed,” said Alan Ruskin, strategist at RBS Securities. “The latest numbers will reinforce the view that consumer spending is on the mend.”



Last month sales surged by 1.6 per cent from the month before, according to the commerce department, as consumers in particular bought more cars, clothing and building supplies. That was stronger than economists’ expected and retail sales have increased by 8.2 per cent in the last year as the recovery has set in.



Excluding car sales, which tend to be volatile, retail sales rose by 0.6 per cent. The only industries that saw sales slump were petrol stations and electronics stores.



Economists keep a close watch on retail sales as a sign of consumer spending, which accounts for about 70 per cent of economic activity in the US. Last week, Don Kohn, the outgoing vice-chairman of the Fed said that consumer spending has been expanding at a “solid pace” due to low interest rates, improving household wealth, recovering confidence and fiscal stimulus.



Meanwhile, the consumer price index ticked up by 0.1 per cent from February to March. That was in line with analysts’ predictions and the small rise was largely related to rises in the prices of fruits and vegetables.



Core prices, which exclude the cost of food and energy, were flat last month and have climbed by just 1.1 per cent from a year ago. Overall, year-on-year, prices have gained 2.3 per cent.



From the Financial Times



http://www.ft.com/cms/s/0/3e0f750e-4...44feab49a.html

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More evidence of a nascent economic recovery occurring.

how about that now ,,,, but just think,, overall we have about 3.2 percent less money to spend just think what we would have been able to buy if taxes and cuts in our pay hadn't of screwed it up.. hell just look what gasoline prices have done in the last 2 months.. its up about 28 cnts a gallon here from 2 months ago and the prices of groceries have gone up to,



so its no surprise that retail sales are up .. the cost of products have increased

[quote name='Inkslinger' date='14 April 2010 - 01:29 PM' timestamp='1271266188' post='139497']

Awww man... Mike's gonna go ballistic.

[/quote]



But Greece is broke and Japan is close! And the banks are taking all your money! What a peep, Good God man.





(I just thought I would fill in for Mike since he isn't around so you wouldn't miss him)