Gadgets Boost December Retail Sales Rise at Fastest Rate in 5 MonthsÂ
U.S.
retail sales rose 0.9% in December, the
strongest pace in five months, to $369.9 billion. driven by strong 3%
jump in electronic gadget sales, according to
the Commerce Department. The increase was better than the 0.7%
advance that economists had forecast.
The December retail sales highlights:
- 3% jump in sales at electronics and appliance stores, which followed an even bigger 5.8% surge in November, led by the introduction of popular video game consoles - Sony's Playstation 3 and Nintendo's Wii.
- Sales were up 3.8% at gasoline stations, reflecting in part higher pump prices during the month.
- Auto sales rose by 0.3% after having been flat in November.
- Excluding the volatile gasoline and auto sectors, retail sales would have risen by 0.7% in December, the best showing since January 2006.
- Sales at department stores and other general merchandise stores rose by 0.9% while sales at specialty clothing stores were up 0.6%.
- However, sales at hardware stores fell by 1.1%, reflecting the continued troubles in the once-booming housing industry.
For all of 2006, retail sales rose by a strong 6%, but down from a 6.9% increase in 2005. Total sales for the October through December 2006 period were up 4.9% from the same period a year ago.
Electronics and appliance stores were up 15.0% from December 2005 and sales of health and personal care stores were up 10.2% from last year.
Consumer spending is closely watched because it accounts for two-thirds of total economic activity. The strength in consumer spending in the final three months of the year may push overall 2006 GDP growth up to an annual rate of 3% or better.
The RBC Cash Index of consumer confidence rose to 95.3 in early January, the best showing in 11 months and up sharply from a December reading of 86.9
Sources and Related Commentary:
- ADVANCE MONTHLY SALES FOR RETAIL TRADE AND FOOD SERVICES - Department of Commerce
- U.S. Retail Sales Firm At Yearend Led By Electronics - Haver Analytics
- Retail Sales Rise at Fastest Rate in 5 Months While Inventories Post Solid Gain - AP
- US Dec retail sales rose 0.9 pct, ex-autos up 1.0 pct - Reuters
- US Economy: Retail Sales Increase the Most in Five Months - Bloomberg
- ECONOMIC
REPORT Retail sales show solid gain in December -
MarketWatch - Retail
sales up 0.9 percent in December -
BusinessWeek
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