Zippyjuan
06-11-2015, 11:46 AM
http://www.stltoday.com/business/national-and-international/us-retail-sales-jump-in-a-sign-of-freer-spending/article_dc53d67f-2da8-51b2-8e40-b966a0c7d320.html
WASHINGTON • Americans stepped up their spending at retailers in May, especially for autos, clothes and building materials, in a sign that strong job growth has begun to boost store sales.
Retail sales rose at a seasonally adjusted 1.2 percent annual rate after a 0.2 percent gain in April, the Commerce Department said Thursday. Over the past 12 months, sales have risen a solid 2.7 percent.
The upswing in shopping reflects greater confidence in an economy still shaking off the ravages of a recession that officially ended six years ago. Employers have added more than 3 million jobs over the past year. Yet until last month, many workers appeared to be saving as much of their paychecks as they could.
"The whole package is looking heartier," said Jennifer Lee, a senior economist at BMO Capital Markets. "Robust job growth, near decade-high auto sales, revolving credit rising at its second-fastest pace in eight years, and now, solid retail sales."
Excluding the volatile categories of autos, gas, building materials and restaurants, so-called core retail sales — which factor into the government's official measure of economic growth — rose at a solid 0.7 percent annual rate in May.
Some economists saw the increase as evidence of stronger economic growth during the current April-June quarter than earlier assumed. Paul Ashworth, chief U.S. economist at Capital Economics, responded to the report by suggesting that annualized second quarter growth could approach a healthy 3 percent annual rate.
Spending at auto dealers and building materials stores jumped at a 2 percent annual rate in May, evidence that consumers are making longer-term investments in their homes and cars.
More at link.
WASHINGTON • Americans stepped up their spending at retailers in May, especially for autos, clothes and building materials, in a sign that strong job growth has begun to boost store sales.
Retail sales rose at a seasonally adjusted 1.2 percent annual rate after a 0.2 percent gain in April, the Commerce Department said Thursday. Over the past 12 months, sales have risen a solid 2.7 percent.
The upswing in shopping reflects greater confidence in an economy still shaking off the ravages of a recession that officially ended six years ago. Employers have added more than 3 million jobs over the past year. Yet until last month, many workers appeared to be saving as much of their paychecks as they could.
"The whole package is looking heartier," said Jennifer Lee, a senior economist at BMO Capital Markets. "Robust job growth, near decade-high auto sales, revolving credit rising at its second-fastest pace in eight years, and now, solid retail sales."
Excluding the volatile categories of autos, gas, building materials and restaurants, so-called core retail sales — which factor into the government's official measure of economic growth — rose at a solid 0.7 percent annual rate in May.
Some economists saw the increase as evidence of stronger economic growth during the current April-June quarter than earlier assumed. Paul Ashworth, chief U.S. economist at Capital Economics, responded to the report by suggesting that annualized second quarter growth could approach a healthy 3 percent annual rate.
Spending at auto dealers and building materials stores jumped at a 2 percent annual rate in May, evidence that consumers are making longer-term investments in their homes and cars.
More at link.