Spending Up
The economy seems uncertain, but American consumers are increasingly opening up their wallets with discretionary spending, according to January retail-sales numbers tabulated by the Washington, D.C.–based National Retail Federation. January’s retail industry sales increased 0.2 percent, seasonally adjusted from December, and 3.5 percent unadjusted year over year. Jack Kleinhenz, NRF’s chief economist, credited the discretionary-spending increase to stock market gains and savings built up during the recession. But he warned the economy would continue to fight for its health. “Sustained growth in 2011 will largely rely on improvement in key economic indicators like employment and housing,” he said.
