Rise in Retail Sales Brightens Recovery Picture
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Submitted by CARPE DIEM
WASHINGTON (Reuters) - Sales at U.S. retailers rose more than expected in January, suggesting consumers were feeling a bit more comfortable to spend and sustain the economic recovery. The Commerce Department said on Friday total retail sales increased 0.5 percent. In addition, December and November were both revised to show stronger spending.
Analysts polled by Reuters had forecast retail sales increasing 0.3% last month. Compared to January last year, sales were up 4.7% (see chart above).
“It’s a nice surprise for the economy, it suggests that the consumer is willing to spend a little. It tells us that retail sales are in a clear recovery,” said Kathleen Stephansen, chief economist at Aladdin Capital Holdings in Stamford, Connecticut.
MP: This is probably one the strongest signs yet of a V-shaped economic recovery (see chart).
