Group items tagged

American incomes rose in November for the fifth straight month, providing much-needed traction for economic recovery. The overall personal income earned by Americans rose by 0.4 percent in the month, according to numbers released by the Commerce Department Wednesday.That fueled a gain in consumer spending, which rose 0.5 percent from October.

American incomes rose in November for the fifth straight month, providing much-needed traction for economic recovery. The overall personal income earned by Americans rose by 0.4 percent in the month, according to numbers released by the Commerce Department Wednesday.That fueled a gain in consumer spending, which rose 0.5 percent from October.Another jolt of positive news: Consumer confidence rose in a December survey by the University of Michigan and Reuters.The picture is still not one of a brisk rebound for the economy. Much of the gain in incomes continues to come from government stimulus programs, and the gains in income and spending are smaller when inflation is taken into account. (Adjusting for inflation, personal income rose 0.2 percent in November. The gain was just 0.1 percent when the impact of government transfer payments is subtracted.)

Mr. Bethune predicts that Gross Domestic Product (GDP) will rise in the fourth quarter at a 4 percent annual pace, up from the third quarter's 2.2 percent rate, which the government reported Monday.

Nationwide's consumer confidence indicator rose to 61 in August from a 14-month low of 56 in July, recovering to a similar level to August 2009. However, the index remains well below the long-run average of 83 and February's two-year high of 84.

News of November sales, delivered on Thursday December 3rd, dampened any holiday cheer. Sales were up by only 0.7% in November in comparable shops compared to the previous year according to Retail Metrics, a research firm. Sales at Saks and Abercrombie & Fitch, a clothes retailer, were down by 26% and 17% respectively. Even discount stores, such as Target, did not live up to analysts’ forecasts.

News of November sales, delivered on Thursday December 3rd, dampened any holiday cheer. Sales were up by only 0.7% in November in comparable shops compared to the previous year according to Retail Metrics, a research firm. Sales at Saks and Abercrombie & Fitch, a clothes retailer, were down by 26% and 17% respectively. Even discount stores, such as Target, did not live up to analysts’ forecasts. November sales figures are a good guide to the health of American retailers. They include traffic from Black Friday, the day after Thanksgiving, when retailers usually start to rake in cash. The day boasts discounts so significant that retailers refer to some of them as “door-busters” and it marks the start of the holiday shopping period. This year hopes were high that Black Friday would see shoppers starting as they meant to go on—with wallets wide open. No such luck. Although more people went to the shops on Black Friday and over that weekend (195m, up by 13% from last year), they spent nearly 8% less per person, according to the National Retail Federation, an industry body.