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Business Title: Retail Sales Make Largest Gains In Two Years Retail sales picked up again in September as consumers increased their spending on clothing, electronics and autos, bolstering hopes for a solid holiday season. Spending increased 1.1 percent last month to a seasonally adjusted $412.9 billion, the Commerce Department reported on Monday. Sales were revised higher to 1.2 percent in August, the best showing in both months since October 2010. "In spite of the uncertainty and unease surrounding our nation’s high unemployment and long-term fiscal challenges, consumers continue to spend and shop," said Matthew Shay, president and chief executive of the National Retail Federation. "Robust back-to-school spending combined with a series of new, technology-led product launches certainly helped retailers in September." NRF is projecting year-over-year retail sales growth of 4.5 percent. Electronics and appliance stores’ sales increased 4.5 percent, boosted by sales of the latest iPhone. Auto sales were up 1.3 percent. “With recent data painting a more optimistic view of consumer confidence, we can finally see some light at the end of the tunnel,” said Jack Kleinhenz, NRF's chief economist. “While the latest retail sales data indicates continued improvement for the economy, increasing gas prices and the looming fiscal cliff still pose serious challenges to the momentum we’ve seen in consumer spending.” Sales increased across all major categories, up 0.6 percent for clothing, 0.4 percent for furniture and home furnishings, 1.1 percent for building materials and garden supplies, 0.4 percent for health and personal care stores and 0.8 percent for sporting goods, hobby, book and music stores’ sales. Consumer spending represents about 70 percent of economic activity and has been constrained by slow wage growth and high unemployment. Gas station sales were up 2.5 percent and food sales, which have experienced a rise in prices due to a severe Midwestern drought, increased 1.2 percent. Retailers caution that while higher gas prices can reflect in a boost spending they also force consumers to shift other spending to gas stations. Still, excluding autos and gas, sales were up a solid 0.9 percent in September. High unemployment and weak pay increases have kept consumers from spending more freely this year. That has held back growth. The economy grew at a weak 1.3 percent rate in the April-June quarter. Most economists believe growth will stay around 2 percent for the rest of the year. The job market has shown modest signs of strengthening as the unemployment rate fell to 7.8 percent last month, the first time during President Obama's tenure that the rate has dropped below 8 percent. Nonstore retailers’ sales increased 1.8 percent, which also include online shopping, was up 1.8 percent.
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#1. To: Brian S (#0)
how about those gas prices, obot
About .50 cheaper than the summer of 2008 prices.
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