This past week, several pieces of data came on the newswire which show we might not be headed for the Great Depression II. Whether or not you agree, it can be said that the U.S. Consumer plays a significant role in how deeply this recession will affect the global economy. That is why these retail data are so important:
1. Sales at U.S. retailers unexpectedly halted a six-month slide in January.
2. Sales at automobile dealerships and parts stores rose 1.6 percent, the first gain since August, after decreasing 2 percent.
3. Excluding autos, gasoline and building materials, the retail group the government uses to calculate gross domestic product figures for consumer spending, sales rose 1.2 percent in January, following a 1.7 percent decrease in December. Sales also rose for electronics, appliances, clothing and food and beverages.
4. Purchases at non-store retailers, which include online and catalog sales, rose 2.7 percent.
5. The inventory of existing homes for sale in 29 major markets covered by an independent research firm declined an average of 2.5 percent in January 2009, compared to December 2008 and down 13 percent compared to January 2008. For the housing market to recover, less inventory is good.
Maybe this is looking at the glass "half full." But definitely, this is positive news. All this comes as Washington continues to push for a whopper stimulus spending bill which everyone agrees is not perfect and will take years to see the full benefit.
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