|
|
| Holiday sales boost for US |
   
Posted Date: 16/11/2011
By By Veronica Smith of AAP
US consumers appear ready to shake off some economic gloom and spend more on holiday shopping, retail sales numbers suggest.
With consumer spending the main growth driver in the world's largest economy, the October data from the Commerce Department provided a mostly positive signal on the crucial year-end shopping season.
Retail sales rose 0.5 per cent in October from September, beating market expectations, and were up 7.2 per cent from a year ago.
And excluding sales of vehicles and fuel, retail sales rose a strong 0.7 per cent in October.
"Despite fears that a drop in the savings rate in the third quarter would curb consumer spending growth in the fourth quarter, and amidst weak readings on consumer confidence, retail sales growth remained quite brisk at the start of the fourth quarter," RDQ Economics analysts said.
A number of major retailers, seeking to entice shoppers, have pushed up the start on the Black Friday sales that traditionally kick off the holiday season a day after the Thanksgiving Day holiday -- November 24 this year.
"Early Black Friday sales may have pushed forward some demand but regardless, it does look like households are out there spending," said Joel Naroff of Naroff Economic Advisors.
A case in point was Walmart, the world's biggest retailer, which announced last week it would jump the gun, opening stores at 10pm Thursday (local time).
"By sharing our Black Friday specials earlier than ever, we hope to make buying decisions easier for parents working hard to give their families the Christmas they deserve," said Duncan Mac Naughton, chief merchandising officer for Walmart US.
The day after Thanksgiving earned the name "Black Friday" as the day when some retailers see their year's net earnings move from the red - losses - into the black column - profits - for the first time during the year.
The initial signs have been good for the holiday season that peaks at Christmas on December 25.
In October, electronics and appliance store sales jumped 3.7 per cent from September, the sharpest rise in two years.
Analysts speculated that part of the rise was due to Apple's launch of its newest smartphone, the iPhone 4S. The company sold more than four million units in the three days after it hit the market on October 4.
Also, non-store retail sales - mainly internet sales - rose 1.5 per cent in October from the prior month and were 11.1 per cent higher than a year earlier.
Nomura analysts predicted that improved consumer sentiment and the bounce-back in equity prices would keep total consumer spending on track for roughly 3.0 per cent annualised growth in the fourth quarter, picking up from 0.7 per cent in the second quarter and 2.4 per cent in the third.
Naroff cautioned that with holiday shopping now revving up in early October, some of the sales that normally might have occurred later in the season may have been pulled forward.
"If true, the November and December numbers may be a little less than expected," he added.
And with high unemployment still hovering around nine per cent more than two years after the recession ended, a depressed housing market and political uncertainty about the government's drive to slash debt and deficits, consumers remain under pressure, analysts cautioned.
Inna Mufteeva, US economist at Natixis, warned of the impact of weak job creation and of households continuing to pare debt.
"Thus, in dynamics, we expect real consumption to slow down somehow" in the fourth quarter, Mufteeva said.
AFP |
Join the discussion online: Be the first to leave a comment.
Please note: all comments are subject to moderation for legal reasons and to prevent spam. We'll approve your comment as quickly as we can. If you don't see it appear you do not need to repost it.
|
|