Confident Customers

On Sunday night, a family sat on the train to Brooklyn with four fancy bags at their feet, bags boasting prominent name brands of designer shoes.  Sightings of self-satisfied, worn-out shoppers have been rare, but recent figures suggest that shoppers have been more willing to shell out on new purchases lately.

This acceleration in sales might impact recruiters as they anticipate a continuation of growth in American retail.  This increase in sales has its roots in a steady increase in retail sales over the past eight months.

The Commerce Department’s U.S. Census Bureau today released retail sales data for February 2011.  Retail sales jumped 1.0 percent.  This figure was slightly below private-sector expectations of a 1.2-percent gain.  Sales at motor vehicle dealers increased 2.3 percent.  Sales excluding automotive dealers increased 0.7 percent, consistent with private-sector expectations of a 0.7 percent gain.

Growth in retail sales can be a leading indicator of economic recovery and future job growth.

“Following strong gains in personal income in January, today’s retail sales data show that consumers are confident and spending, fueling growth of the U.S. economy,” U.S. Commerce Secretary Gary Locke said.

Secretary Locke assumes that this increase in sales can be credited to current taxation policies.

“The Obama administration has worked with both Democrats and Republicans to create the conditions for sustained job creation and growth by extending tax cuts for the middle class and creating incentives to encourage small businesses hiring.  Amid tough economic choices, we will continue to make smart investments that empower America’s families and businesses to win the future.”