The Retail Numbers Should Be Marching

As we see growth in the US job market, we can only hope that we begin to see growth in the retail market as well.  Reuters reports that currently, the United States economy hasn’t quite built up to the proper level of retail sales since the growth of the economy has started to climb back over the past months.  Stella Dawson insists that because retail is responsible for 2/3 of the economic activity in the US, the stability of the economy will eventually rely on consumers continuing to buy products. 

Dawson points out that not only has the job market improved, but more people are starting to buy cars in 2012.  As historical data can explain, people choose to save more during tougher times.  In the past few months, more Americans are feeling confident with the state of the economy.  In the next few months, it would be safe to bet that people are going to continue to trust more in the economy.

The Personal Savings Rate in the United States shows that people are saving less of their money as the US has started to climb out of the Great Recession.  Hopefully this is a sign that the tougher times are behind us.

The growth in the United States economy has come at a time when most of the other major countries are struggling.  China has forecasted slower growth in the GDP.  Europe is still dealing with the constant threat of default by Greece.  But among all of this, the US still has a chance to benefit and bounce back. 

Dawson, Stella. “US Retail Therapy Needed”. Reuters. http://www.reuters.com/article/2012/03/11/us-economy-global-weekahead-idUSBRE82A0BT20120311

“Personal Savings Rate”. FRED. http://research.stlouisfed.org/fred2/series/PSAVERT