Steady consumer spending could continue to boost retail sales
As the American economy has improved over the past few months, consumers are becoming more confident in their own financial conditions and this is showing in their spending levels. If shoppers keep hitting retail stores and websites at the same pace, retail sales should be boosted in the coming months.
According to the Deloitte Consumer Spending Index, February was a positive month for consumer spending even though the number of weekly unemployment claims rose and concerns lingered over payroll tax increases. However, the index revealed that shoppers were not too phased by these worries, as spending remained steady throughout February. Last month's figure jumped to 4.0 from January's index of 3.9. Deloitte analyzes real wages, initial unemployment claims, tax burdens and real new home prices to come up with its monthly index. Authors of the report stated that all signs are pointing to further economic improvement bolstered by increased spending among consumers.
Retail sales in February were positive, as statistics from the Commerce Department revealed sales totals increased 1.1 percent from the previous month, which represents the biggest jump since September 2012, according to Reuters.
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