November Retail Sales Rise

Retail sales rose 1.3% in November, which may indicate that the U.S. economy is recovering better than expected, according to data from the Commerce Department.

Other financial news included a report from the University of Michigan and Reuters indicating that their consumer sentiment index rose in early December to the highest level since September.

The financial news caused some economists to upgrade their forecasts for growth during the fourth quarter, according to MarketWatch.

Sales gains were spread throughout the various sectors, and only furniture and clothing sales fell during the month. Many retailers are hoping to see sales improve this holiday season as compared to last year.

“Consumers are tapping into savings and beginning to spend. With the U.S. and global economy turning up, hours and incomes will continue to rise, supporting further gains in consumer spending,” John Herrmann, chief economist at Herrmann Forecasting in Summit, N.J., told Bloomberg.

Although some economists are hopeful about an economic recover, challenges remain. Many consumers worried about the credit crunch continue to sock away money in savings rather than spend.  Also, the U.S. unemployment rate is at 10%, and many employed workers still believe that they could become a victim of downsizing.

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