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Stronger rise in US retail sales in January
By Martin Crutsinger |
February 13, 2010, Saturday
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Print Edition
Print Edition
UNITED States retail sales posted a better-than-expected increase in January, a welcome development that could mean stronger economic growth in coming months.
The US Commerce Department yesterday said retail sales rose by 0.5 percent last month, the best showing since November and better than the 0.3 percent increase economists had expected.
Excluding autos, sales posted a 0.6 percent reading, also better than expected, with strength coming from a surge at general merchandise stores, a category that includes big national chains such as those owned by Wal-Mart Stores Inc.
Strength in consumer spending is important because it accounts for 70 percent of economic activity. Economists are worried that the spending gains since last summer could falter given the tough times facing many United States households and that weakness could derail the fledgling recovery.
The overall economy grew at an annual rate of 5.7 percent in the October-December period, the best showing in six years, but the concern is that this growth could slow considerably in coming months as the impact of the government's stimulus programs begins to fade and unemployment remains stubbornly high.
In its annual economic report to Congress, the Obama administration on Thursday forecast that the economy would average 95,900 new jobs per month this year, not enough to make a significant dent in an unemployment rate that now stands at 9.7 percent. The administration's economists also forecast that Americans' personal savings would remain high as credit remains tight, another development likely to weigh on spending.
The 0.5 percent increase in retail sales in January followed a 0.1 percent decline in December, a figure that was revised up from an initial report that sales had fallen 0.3 percent during the month. The latest reading was the best showing since sales had surged by 2 percent in November.
Sales at auto dealers were flat in January following a 0.1 percent rise in December, due to safety recalls at Toyota.
The US Commerce Department yesterday said retail sales rose by 0.5 percent last month, the best showing since November and better than the 0.3 percent increase economists had expected.
Excluding autos, sales posted a 0.6 percent reading, also better than expected, with strength coming from a surge at general merchandise stores, a category that includes big national chains such as those owned by Wal-Mart Stores Inc.
Strength in consumer spending is important because it accounts for 70 percent of economic activity. Economists are worried that the spending gains since last summer could falter given the tough times facing many United States households and that weakness could derail the fledgling recovery.
The overall economy grew at an annual rate of 5.7 percent in the October-December period, the best showing in six years, but the concern is that this growth could slow considerably in coming months as the impact of the government's stimulus programs begins to fade and unemployment remains stubbornly high.
In its annual economic report to Congress, the Obama administration on Thursday forecast that the economy would average 95,900 new jobs per month this year, not enough to make a significant dent in an unemployment rate that now stands at 9.7 percent. The administration's economists also forecast that Americans' personal savings would remain high as credit remains tight, another development likely to weigh on spending.
The 0.5 percent increase in retail sales in January followed a 0.1 percent decline in December, a figure that was revised up from an initial report that sales had fallen 0.3 percent during the month. The latest reading was the best showing since sales had surged by 2 percent in November.
Sales at auto dealers were flat in January following a 0.1 percent rise in December, due to safety recalls at Toyota.
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