US retail sales beat blizzards with surprise rise
Sunday, 14 March 2010
WASHINGTON, March 13 (AFP): The storied American consumer braved blizzards and economic headwinds to shop in February, unexpectedly pushing up retail sales for the second straight month, official data showed yesterday.
Retail and food service sales rose 0.3 per cent from January to 355.5 billion dollars, the Commerce Department said.
Most analysts expected they would fall 0.2 per cent amid fierce winter storms that hammered large areas of the country.
The surprise advance sparked hopes the economy is finally gaining traction in what has been so far a government-fueled recovery from the worst recession since the Great Depression.
"Even with some terrifically blustery storms, consumers managed to spend money in February," said Robert Brusca at FAO Economics.
"You can bet against the sun coming up or the full moon cycle turning a guy into a vampire, but never ever bet against the US consumer. He is on his way back and... will lift the recovery to higher ground."
The monthly retail sales report is a key indicator of consumer spending, which accounts for two-thirds of US output, and thus economic momentum.
But a separate report on consumer sentiment disappointed Friday, highlighting the fragile nature of the budding recovery.
The University of Michigan's consumer confidence index dropped for the second consecutive month in March, to 72.5 from 73.6 in February, instead of rising to 74.0 as analysts expected.
The improvement in retail sales in February was broad-based, with shoppers snapping up a range of goods from clothing, furniture to electronics and appliances.
Only two of the 12 sectors measured declined.
Automobile sales tumbled 2.0 per cent, the steepest skid since September 2009, in part reflecting the impact of Japanese automaker Toyota's massive recalls.
Health and personal care sales dropped 0.7 per cent, the biggest fall since February 2004.
"Surprisingly, given the bad weather, the non-store retailers' category-which includes Internet shopping-didn't share in the gains. Non-store sales were flat," said Nigel Gault, chief US economist at IHS Global Insight.
Retail and food service sales rose 0.3 per cent from January to 355.5 billion dollars, the Commerce Department said.
Most analysts expected they would fall 0.2 per cent amid fierce winter storms that hammered large areas of the country.
The surprise advance sparked hopes the economy is finally gaining traction in what has been so far a government-fueled recovery from the worst recession since the Great Depression.
"Even with some terrifically blustery storms, consumers managed to spend money in February," said Robert Brusca at FAO Economics.
"You can bet against the sun coming up or the full moon cycle turning a guy into a vampire, but never ever bet against the US consumer. He is on his way back and... will lift the recovery to higher ground."
The monthly retail sales report is a key indicator of consumer spending, which accounts for two-thirds of US output, and thus economic momentum.
But a separate report on consumer sentiment disappointed Friday, highlighting the fragile nature of the budding recovery.
The University of Michigan's consumer confidence index dropped for the second consecutive month in March, to 72.5 from 73.6 in February, instead of rising to 74.0 as analysts expected.
The improvement in retail sales in February was broad-based, with shoppers snapping up a range of goods from clothing, furniture to electronics and appliances.
Only two of the 12 sectors measured declined.
Automobile sales tumbled 2.0 per cent, the steepest skid since September 2009, in part reflecting the impact of Japanese automaker Toyota's massive recalls.
Health and personal care sales dropped 0.7 per cent, the biggest fall since February 2004.
"Surprisingly, given the bad weather, the non-store retailers' category-which includes Internet shopping-didn't share in the gains. Non-store sales were flat," said Nigel Gault, chief US economist at IHS Global Insight.