Dec. 11 (Bloomberg) -- Retail sales and consumer confidence in the U.S. increased more than forecast, indicating that economic growth is picking up as the new year approaches.
Sales climbed 1.3 percent in November, more than double the 0.6 percent median estimate in a Bloomberg survey of economists, a Commerce Department report showed today. The Reuters/University of Michigan preliminary index of consumer sentiment for December rose to 73.4 from 67.4 the month before.
Stocks rallied and Treasuries slid on optimism that American households, whose spending makes up 70 percent of the economy, are weathering the worst employment slump since World War II. The reports, together with gains in Chinese industrial production and imports, reinforce evidence that the global recovery is gaining strength.
Pent-up demand is beginning to be released, said John Herrmann, chief economist at Herrmann Forecasting in Summit, New Jersey. Consumers are tapping into savings and beginning to spend. With the U.S. and global economy turning up, hours and incomes will continue to rise, supporting further gains in consumer spending.
U.S. Economy: Retail Sales, Confidence Beat Forecasts (Update1) - Bloomberg.com
Sales climbed 1.3 percent in November, more than double the 0.6 percent median estimate in a Bloomberg survey of economists, a Commerce Department report showed today. The Reuters/University of Michigan preliminary index of consumer sentiment for December rose to 73.4 from 67.4 the month before.
Stocks rallied and Treasuries slid on optimism that American households, whose spending makes up 70 percent of the economy, are weathering the worst employment slump since World War II. The reports, together with gains in Chinese industrial production and imports, reinforce evidence that the global recovery is gaining strength.
Pent-up demand is beginning to be released, said John Herrmann, chief economist at Herrmann Forecasting in Summit, New Jersey. Consumers are tapping into savings and beginning to spend. With the U.S. and global economy turning up, hours and incomes will continue to rise, supporting further gains in consumer spending.
U.S. Economy: Retail Sales, Confidence Beat Forecasts (Update1) - Bloomberg.com
