|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    23rd of February 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Economy News feed Economy News

All Financial News feed All Financial News




Surprise rise in US retail sales

Bookmark and Share

by Kay Mitchell
”Surprise

The US Commerce Department in Washing today revealed some good news for the world’s largest economy after it revealed a 1% increase in retail sales in January – the rise was the first in seven months.

However, while the rise was seen as a glimmer of hope after retail sales plummeted 3% in December, many economists believe the rise is attributed to shoppers being tempted by heavy New Year discounting.

On an annual basis, sales are down 9.7% compared with January 2008, according to the Commerce Department.

Excluding motor vehicles and parts, sales in January gained 0.9%, while petrol sales rose 2.6% as prices continued to decline.

The US economy fell into recession in December 2007, following the housing market collapse and the global credit crisis.

Commenting on the figures, Zach Pandl, an economist at Nomura Securities International in New York, said “It is a bit of a puzzle because consumer fundamentals remain poor. Maybe retailers lured shoppers with aggressive discounting. Still it’s a small piece of good news.”

Last week, figures published by the US Labor Department revealed that the rate of unemployment in the US rose from 7.2% in December to 7.6% in January – the highest level since 1992.

The sharp rise in job losses and falling house prices have had a major impact on consumer spending, which makes up for about two-thirds of US economic activity.

Across the Atlantic, figures released earlier this week from the British Retail Consortium revealed UK like-for-like retail sales in January rose 1.1% compared with a year earlier.

As with the US, the rise in the UK was also attributed to heavy discounting.

Discuss this in the Finance Markets forums

Story link: Surprise rise in US retail sales



News posted: February 12, 2009

Financial Services:





Related financial stories to: Surprise rise in US retail sales:
Previous: «
Next: »

Visited 3310 times, 1 so far today

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Tags: , , , , , , ,