CALIFORNIA BUSINESS MINUTE
Retail Sales
02-14-12
Hi, I am Tim Johnson and welcome to the California Business Minute.
The U.S. Commerce Dept announced that advance estimates of U.S. retail and
food services sales for January, adjusted for seasonal variation and holiday
and trading-day differences, but not for price changes, were $401.4 billion,
an increase of 0.4 percent (±0.5%)* from the previous month and 5.8 percent
(±0.7%) above January 2011.
December 2011 retail sales figures were revised downward illustrating a flat
growth curve on holiday spending for the month. Analysts illustrate that
Americans bought early for the 2011 holiday season.
Meanwhile, retail sales rebounded for January. Increases were seen in the
following sectors: General Merchandise, Building materials and garden; Food
& Beverage; Health & Personal Care and in Sporting goods, hobby, book and
music stores. Decreases were seen in Home furnishings, motor vehicles & parts,
electronics and appliances specifically and significantly in computer and
software.
Economists had expressed concerns that consumers might pull back on spending
this year because their wages hadn't kept pace with inflation. And many consumers
relied on savings to make up the difference. The retail sales report shows
consumers are managing to increase spending at the same pace they did late last
year, despite only small gains in pay.
It appears that the American consumer is taking on more debt after cutting back
immediately after the recession. Consumer borrowing, which includes credit cards,
auto loans, and student loans, posted the biggest monthly gains in a decade in
November and December. The increases could mean that consumers are either more
confident about the economy or ignoring prudent personal financial management.
I am Tim Johnson and this has been the California Business Minute.
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