U.S. retail sales rose 1.6% in March, aided by strong demand for autos, building materials and new clothes. The Commerce Department said sales totaled $363.2 billion - the fifth gain in the past six months. Retail sales are 7.6% higher compared to one year earlier. Excluding autos and trucks, March retail sales climbed 0.6% to $300.5 billion. Economists surveyed by MarketWatch forecast sales to climb 1.3%, with sales excluding autos up 0.6%. Also, retail sales in February were revised slightly higher.
Source: Census
I think you better look at this Market Ticker post: http://market-ticker.denninger.net/archives/2194-Oh,-So-The-Recovery-Is-About-Delinquency.html
ReplyDeleteRetail sales appear to be going up because people aren't paying their mortgages. I don't think that's a good trend.
transfer of wealth (from debt holders to indebted homeowners) may be driving this, but the economic rebound is happening.
ReplyDeletei think the key to what you're pointing out is whether it is sustainable (or whether the wealth individuals think they have is really there).
unless disposable income increases due to compensation to support further consumption, it probably is not.