SpendingPulse: Retail Sales Rise, But CE Weak
MasterCard Advisors’ SpendingPulse reported an 8.8 percent year-over-year growth in overall retail sales. Electronics, however, was listed as one of the weaker categories, along with furniture and furnishings, hardware and department stores.
“We have not seen this sort of sustained growth in retail sales since late 2005/early 2006, when the economy was in much better shape and the unemployment rate was more than 4% below its current level," Kamalesh Rao, Director of Economic Research for MasterCard Advisors SpendingPulse, said as part of the announcement.
Today, the general state of the labor market and a mixed economic environment suggests that the current rate of retail expansion could be vulnerable, especially given the weight of higher fuel costs on discretionary spending. Additional momentum in the labor market could offset that uncertainty.”