Feb. retail-sales report offers positive surprise
AP
Long, hard recovery, but at least they're not digging the hole any deeper...this country is finally heading in the right direction.
By MARTIN CRUTSINGER, AP Economics Writer Martin Crutsinger, Ap Economics Writer – 2 hrs 39 mins ago
WASHINGTON – Retail sales posted a surprising increase in February as consumers did not let major snowstorms stop them from racking up purchases. The advance, the biggest since November, provided hope that the recovery from the Great Recession is gaining momentum.
Some economists cautioned, though, that spending increases will remain modest as long as wages stay flat and job creation weak. They also noted that the government revised down the increase in retail sales for January.
For February, sales rose 0.3 percent, the Commerce Department said Friday. That surpassed expectations that sales would decline 0.2 percent.
The overall gain was held back by a 2 percent decline in auto sales, reflecting in part the recall problems at Toyota. Excluding autos, sales rose 0.8 percent. That was far better than the 0.1 percent increase excluding autos that economists had forecast.
But the February sales gain followed a scant rise in January and a slight decline for December. The increase for January was revised down from 0.5 percent to 0.1 percent.
"Weak jobs growth, low wages growth and tight credit mean that any further acceleration in consumption growth is unlikely," Paul Dales, an economist at Capital Economics, wrote in a research note.
Still, the February gain suggested that consumers are spending more freely than they were a few months ago. The increases were widespread.
news.yahoo.com |
