NRF: Apparel, Electronics Lead Feb.’s Slight Retail Sales Increase
by Christina Lee on March 15th, 2009
Retail sales climbed upward for the second month in a row in February – a trend that, though expected to be short-lived, is still catching the attention of experts.
The National Retail Federation reported Thursday a 0.6 percent seasonally adjusted increase overall, excluding that of automobiles, gas stations and restaurants. This observation follows a 1.4 percent increase in January, according to a revised report.
“This is quite startling… a big change,” said Ian Shepherdson of High Frequency Economics to the Wall Street Journal.
But while economists searched for a reason behind the behavior, they had a hard time finding one.
“Some of the increase could be due to clearance of unsold merchandise and the impact of a phasing out of discounts around Christmas … but that is unlikely to explain all of the strength,” according to a Goldman Sachs report.
Overall, economists still sense that such upward movement may only be temporary.
“While we are seeing growth in consumer spending, it remains to be seen whether this trend will continue,” said Rosalind Wells, chief economist, in a statement.
Sales levels are also still below that of 2008, which the National Retail Federation expects to see through the first half of 2009. But for now, the trade group sees for certain that the current month-to-month growth is driven by not one, but a few retail categories. The highest performers include clothing and clothing accessories, with a 2.8 percent increase, and electronics and appliances, with a 1.2 percent increase.