Retail Sales in U.S. Unexpectedly Climb 1%, First Increase in Seven Months

[Purveyor]

Source: Bloomberg

Feb. 12 (Bloomberg) -- Sales at U.S. retailers unexpectedly halted a record six-month slide in January, an advance that may not be sustained as job losses climb.

The 1 percent increase followed a 3 percent drop the prior month, the Commerce Department said today in Washington. Excluding cars, the gain was 0.9 percent. Last month’s rise reflected higher gasoline prices and more spending on items including clothing and food.

“There were enough post-holiday sales to lure people into the stores; the question is whether that is sustainable -- and the answer is, obviously not,” said Tom Porcelli, a senior economist at Castlestone Management Ltd. In New York. A “collapsing’ job market means spending will deteriorate further, he said.

Separate figures today showed the number of Americans collecting unemployment benefits reached a record 4.8 million two weeks ago, reinforcing the threat to spending. Economists anticipate household purchases will tumble further in the first half of the year, underscoring the case for the $789 billion stimulus package under debate in Congress.

Stock-index futures initially pared losses after the retail- sales report was released, then resumed their decline. Contracts on the Standard & Poor’s 500 Stock Index fell 1.6 percent to 818 at 9:19 a.m. in New York. Treasuries were little changed, with yields on benchmark 10-year notes at 2.76 percent.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aFDYAuBwkhT0&refer=home

[sandnsea]

1. Yes, right around the Inauguration

But said to say, it fell right off again. I don't think it's continuing to decline, but I don't think we're continuing to pick up either. Kind of a flat line with a lot of people thinking about spending, seems to me.

[DS1]

2. Rightwing claiming it's Bush's turnaround, just like the did with Clinton in 3, 2

[byeya]

5. Bush's Anchor Economy

The RW can claim what it wants but it's going to get worse before it gets worse.
After a while, you simply have to buy new shoes or other necessity. I think I read in Barron's that inventories are at a near historic low. The merchants don't think a turnaround is coming anytime soon. It also looks like 2010 is the first possible time the economy, where you and I live, will perk up.
In addition, for every 3 sectors of the economy that is firing people, only 1 sector is hiring.

[pampango]

7. If it is true that inventories are near historic lows that could be a good thing.

IF there is a pickup in consumer demand, retailers won't have large quantities in stock and will have to order new product. Until inventory is used up, sales will primarily come from stuff that has already been made.

[Whosis]

11. Went to the grocery yesterday

And the shelves were empty in some places. I have never seen that even when I lived back east and there was runs on bread and milk before snow. Also found out to day that a Home Depot that was coming to town is waiting now. I don't care about HD because I like our Ace Hardware, but it sure would have helped some folks.

[BR_Parkway]

3. Gasoline, clothing and food - wonder how much was more spending

based on price increases rather than people just buying more stuff

[havocmom]

6. Exactly! Prices up and customers down

Just look around. See many shoppers?

[Ian David]

4. It's probably all the people buying the Obama Gold Coins, Obama Collector Plates, Obama T-Shirts...

... It's AWESOME to walk into I-Party and find a whole section of Obama stuff!

Or into The Harvard Coop Bookstore and find a whole Obama section!

Or Borders Book...

Or Stop & Shop...

I WANT TO DECORATE MY WHOLE HOUSE IN A NEW STYLE: POST-MODERN OBAMA!

[Deep13]

8. Sales of Hope and Change.

:-)

[HopeHoops]

9. Geeze, you do have to wonder what percentage of the GDP is from Obama products!

[Winterblues]

10. A lot of consumer Confidence has been restored just by having a Democrat as President.

It was noticeable immediately after Clinton was elected also.

[DemWynner]

12. Those Bank Execs are out spending their bonuses

Because the rest of us are not buying much because we don't have jobs or are afraid of loosing our jobs.

[w8liftinglady]

13. i wonder how many were gift cards?

[jsamuel]

14. tax refunds

[Historic NY]

15. After Christmas Shopping & sales...see if it holds for Feb.

[slackmaster]

16. Stuff eventually wears out, broken, outgrown, etc.

And needs to be replaced.

[Mudoria]

17. Personally I'm going to take it as a bit of good news

in otherwise trying times. Just a fluke, maybe. But right now any good news is welcome.

[sofa king]

18. It's true: I ran out of toilet paper.

And I can't afford to visit any hotels so I can stock up on Gideons.