Economy: Retail Sales Climb While Jobless Claims Decline; Consumer Confidence Still A Problem
The number of Americans filing first-time claims for jobless benefits dropped by 6,000 last week, the second consecutive weekly decline and an indication that some companies are nearing the end of payroll reductions. At the same time, job openings at U.S. public and private-sector employers increased by 193,000 in January to a seasonally adjusted 2.7 million, a 7.6% increase over December for a second consecutive monthly gain and the highest level since February 2009. Despite a solid gain in retail sales in February, however, consumer confidence – as measured by the Reuters/University of Michigan preliminary consumer sentiment index – slipped unexpectedly, dropping from 73.6 at the end of February to 72.5 in early March. The retail sales figures – which were up 0.3% for the month (0.8% excluding vehicle sales) – indicate that some consumers have begun spending again but, until unemployment begins to ease considerably, many Americans who have lost their job or are concerned that they might lack the confidence to return to previous spending levels. [Sources: Marketwatch, Bloomberg, Reuters, Wall Street Journal]
From MediaEconomy Digest, © 2010. Published by Bunzel Media Strategies
