- Retail Sales Less Autos for January rose 2.2% versus estimates of a .8% increase and a .2% rise in December.
BOTTOM LINE: Retailers rang up their biggest sales gains since May 2004 last month, more than doubling economists’ forecasts as energy prices fell and the labor market improved, Bloomberg reported. Unemployment is at a four-year low and recent wage gains have been healthy. Sales at restaurants and drinking establishments gained 3.2%, the best showing since January 2001. Moreover, same-store sales rose a brisk 5.1% in January, the largest year-over-year increase since June, according to the ICSC. The National Retail Federation estimates that $18.5 billion in gift cards were purchased last year, a 6.6% gain over 2004. Economists are now projecting strong US economic growth of 4% for the first quarter of this year. I continue to believe falling energy prices, a healthy job market, low long-term rates, rising stocks prices, improving sentiment and a stable housing market will boost consumer spending throughout most of the year.
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