By Fred Harteis

SALES GROWTH RETAIL SECTOR

Shoppers who disappeared from the stores in early summer are snapping up cars and other big-ticket items while raising hopes the worrisome economic slowdown in the early summer will not continue info fall.

The Commerce Department recently reported that retail sales rebounded by 0.7% last month.  Consumer demand for autos was strong with the return of attractive incentive offers from auto dealers.

The late summer increase in retail sales was led by a 2.4% jump in auto sales after a 3% drop in early summer.  Dealers then renewed offers of financing incentives that lured buyers back to the showrooms.

The strength in July sales and the declines in jobless claims provided evidence the economy was coming out of what Federal Reserve Chairman, Alan Greenspan, termed as early summer’s "soft patch."

In addition to autos, other areas where sales gained included furniture stores, general merchandise stores, sporting goods stores, and entertainment (e.g., restaurants and bars).  Not all areas of the retail sector grew.  Sales dropped at gasoline stations and in building supply stores.

Good news on the job market:

The Labor Department reported that over 144,000 new jobs were created in August.

Economists said both reports should help relieve worries that an early summer slowdown could broaden into a more serious threat to the economic recovery.

Rising job gains are seen as critical to supporting future gains in consumer spending.

Sources: http://www.commerce.gov/

Columnist:  Fred Harteis, Harteis International, Biznet Productions…read more