Did the stimulus do this?

Retail sales rise unexpectedly in January
By MARCY GORDON, AP Business Writer Marcy Gordon, Ap Business Writer
1 hr 42 mins ago

WASHINGTON – U.S. retail sales jumped 1 percent in January, reversing a six-month declining trend and defying economists' expectations by posting the biggest increase in 14 months.

But higher gasoline prices and sales, and buyers snapping up other items on post-holiday discounts appeared to aid last month's results. Analysts cautioned that the relief is unlikely to last.

The Commerce Department reported Thursday that January retail sales rose 1 percent from December after having fallen for six straight months. Wall Street economists surveyed by Thomson Reuters had expected January sales to show a drop of 0.8 percent. They plunged a revised lower 3 percent in December, which marked the weakest holiday selling season since at least 1969.

"This is a big surprise, though the net rise in sales is less impressive than it looks because (December and November) were revised down by 0.3 percent each," Ian Shepherdson, chief U.S. economist at High Frequency Economics, wrote in a research note. "The headline relief today is welcome but it is unlikely to last."

The January report shows strong increases in sales of automobiles and in general merchandise stores — the "big box" outlets — though sales by department stores, carrying fewer varieties of items, posted a decline. Wal-Mart Stores Inc., the world's largest retailer, is an example of a discounter that has benefited from strapped consumers' focus on necessities like groceries and on bargains for other items.

Sales at gas stations jumped 2.6 percent in January — the biggest increase since June, while sales of autos and parts rose 1.6 percent.

Total retail sales excluding autos and parts still rose 0.9 percent, which again easily beat estimates by economists who expected a decline of 0.5 percent.

Nonstore retailers, such as Internet and mail-order shopping, advanced 2.7 percent in January, while sales of food and beverages rose 2.1 percent. Health and personal care stores registered flat sales last month.

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ziggy wrote:Maybe people are starting to be more optimistic about their economic prospects.

Cato wrote:

ziggy wrote:Maybe people are starting to be more optimistic about their economic prospects.

If you are saying Obama's Stimulus package had something to do with it, think again. The markets certainly aren't reflecting your opinion.

ziggy wrote:

Cato wrote:

ziggy wrote:Maybe people are starting to be more optimistic about their economic prospects.

If you are saying Obama's Stimulus package had something to do with it, think again. The markets certainly aren't reflecting your opinion.

What markets? The stock market? We are talking about real people, buying real goods here. Apparently people are buying more again.

Some laid off construction workers here in Jackson County are salivating at the prospect of being called back to work if this "stimulus" deal passes.

I tried telling them that it was all just borrowed money- an illusionary economic "stimulus". When I tell them that, their eyes just sort of glaze over in a "So what" stance.

Cato wrote:

ziggy wrote:

Cato wrote:

ziggy wrote:Maybe people are starting to be more optimistic about their economic prospects.

If you are saying Obama's Stimulus package had something to do with it, think again. The markets certainly aren't reflecting your opinion.

What markets? The stock market? We are talking about real people, buying real goods here. Apparently people are buying more again.

Some laid off construction workers here in Jackson County are salivating at the prospect of being called back to work if this "stimulus" deal passes.

I tried telling them that it was all just borrowed money- an illusionary economic "stimulus". When I tell them that, their eyes just sort of glaze over in a "So what" stance.

So now you are saying that us little folks that invest in the stock market aren't real people. Tell you what bohunk, there is alot of us that don't have a pile a confidence in anything your beloved politicians do.

ziggy wrote:

Cato wrote:

ziggy wrote:

Cato wrote:

ziggy wrote:Maybe people are starting to be more optimistic about their economic prospects.

If you are saying Obama's Stimulus package had something to do with it, think again. The markets certainly aren't reflecting your opinion.

What markets? The stock market? We are talking about real people, buying real goods here. Apparently people are buying more again.

Some laid off construction workers here in Jackson County are salivating at the prospect of being called back to work if this "stimulus" deal passes.

I tried telling them that it was all just borrowed money- an illusionary economic "stimulus". When I tell them that, their eyes just sort of glaze over in a "So what" stance.

So now you are saying that us little folks that invest in the stock market aren't real people. Tell you what bohunk, there is alot of us that don't have a pile a confidence in anything your beloved politicians do.

But Cato, the article was not about the stock market- but about people buying stuff. How can you or I or anyone make any money in the stock market unless people buy stuff. Unless someone sells something- a product or a service- to someone who will buy it- nothing will happen in the economy.