Now it is too early to declare the victory over the recession (which has technically ended months ago but due to high unemployment lingers in many people's feelings). May actually be ready to abate...The American Consumerism long delcared dead by many at DKos on the Rec list seems to want to defy their predictions...
http://finance.yahoo.com/...
Retailers on Thursday reported revenue figures that topped expectations and showed the second-biggest monthly percentage gain in four years, according to one measure. And the reports raise hopes spending might remain strong for the rest of the holiday season and help the economy recover.
This positive feeling can have a huge multiplier affect as retailers more willing to take chances with bigger orders, get more people who make, package, inspect, deliver and sell the goods increased incomes and job opportunities.
It also potentially means bigger year end bonuses for sales personnel who will spend the money and taxes will go into reducing the deficit.
The International Council of Shopping Centers' index showed a 5.8 percent gain in revenue at stores open at least a year for November, much better than the 3 to 4 percent increase expected.
It is clear that these surpassed expectations (and I have seen doom and gloom expectations of anemic 1% growth) will be an economic engine for creating jobs and opportunity.
The retail gains were broad-based, showing that many types of shoppers were in the mood to buy, if the product and price were right. Stores reporting gains that topped Wall Street expectations included Costco Wholesale Corp., Target Corp., Victoria's Secret and pricey teen retailer Abercrombie & Fitch.
And it is not just the wealthy buying things, the increase is broad based from middle class through the wealthy...that is a very promising sign. As many have pointed out...you cannot have a recovery with just the wealthy spending more freely...
Many have spent the last 3 years deleveraging and now they are clearly more comfortable spending some of that hard earned/saved income on holiday cheer...
But wait there is more...
According to Perkins' calculations, total retail revenue at the 30 stores he tracks was 2.1 percent higher than November 2007 levels.
That is right, the predictions of never returning to pre-crash spending levels or at least not in this decade seem to be about 10 years off the mark...
But are they just buying on credit...well not completely...
Encouraging economic signs may have consumers feeling better. Americans' income rose 0.5 percent in October, according to a government report last month. Incomes hadn't risen at all in September.
Income rose to coincide with the increased spending...so this is not just another credit binge.
So at least some people IRL are looking beyond DKos for their spending direction and I hope that they continue to spend our way out of this recession.../peace