ShareEach day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update discusses retail sales.
- The Department of Census released retail sales figures for February this morning. The headline figure rose a healthy 1.1% from January to February, mostly on stronger auto sales and the recent jump in gasoline prices. However, the core index, which excludes autos and gas, rose 0.6%, another strong figure. Furthermore, the figure for last month was revised upward with additional data from 0.4% to 0.6%.
- Sales at furniture and home furnishings stores slipped from January to February despite signs of improved home sales, but sales at building materials dealers have expanded and sales of appliances and electronics rose by 1.4% and 1.0%, respectively. With the spring market right around the corner, home sellers are prepping their homes for the coming market, while some recent buyers are kitting out their new residences.
- Today’s release is a good sign for housing. Consumer spending is an important driver of job creation, which has been buoyant in recent months, but must expand much further to attain a robust recovery. The sharp increase in gas prices will begin to weigh on consumers and businesses that involve trucking or driving like REALTORS®. However, the net effect is likely to be positive as stronger retain sales will help to extend the jobs recovery, which is so important to consumer confidence and home sales. Furthermore, sub-4% mortgage rates are likely to ignite consumer interest this spring.
