GOOD START FOR 2012?
After-holiday clearance sales, made even sweeter by gift cards, sent Americans out to the mall at the start of the year - but shoppers shied away from car showrooms, making for a tepid start beginning to 2012.
According to figures from the Commerce Department, total January retail sales were up, but not by as much as expected due to slower auto sales. But once automobile purchases, as well as gasoline, and building material sales were factored out - the numbers actually show healthy consumer spending.
The National Retail Federation is trying to put a positive spin on the number, citing warmer temperatures and those gift cards as reasons consumers continued spending after the holidays. But the holidays are turning out to not be as strong as first thought, according to downward revisions to official retail sales data for November and December.
And there could be some weakness ahead. Washington is once again debating an extension of a payroll tax holiday, which could end at the end of this month.
And extended unemployment benefits could stop as well if lawmakers let them expire - two things that would certainly take money out of consumer pockets, just as the U.S. economy is showing signs of a new year pick-up. (Conway Gittens/ Reuters)
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