By TraderVox.com
A report released by the Labor Department on March 9 indicated that employers took in 227, 000 new employees in the February; this followed a bigger-than-expected intake of 284,000 employees in January. The report indicated that the unemployment rate has been held at a record low of 8.3 percent.
According to many analysts, the boost in employment over the last 3 months could have led to an increase in consumer spending in the US. A US retail sales report expected to be released later today is likely to show an increase of 1.1 percent for February, up from 0.4 percent recorded in January.
Economist such as Omair Sharif of RBS Securities LLC indicates that the strong retail sales for February could be as a result of the large number of jobs created by employers. The Fed’s low interest rate is seen to be working as the economy seems to be gaining stability each month. Retail Sales Report is released by the department of commerce every month to show consumer spending for each month.
A strong increase in consumer spending is an indicator of stability in an economy. In a report released on February 14, the retail sales were at $358.78 billion. Retail sales report, which excludes food services, has been on the rise since July 2010.
There has been a boost in car sales in the month of February. Among the companies that have recorded an increase in car sales include Chrysler Group LLC and General Motors. According to Don Johnson, the person in charge of sales in GM US, the increased number of sales is as a result of good credit availability and stronger employment.
The retail sales report is likely to show an increase in gasoline cost, which is one of the concerns Ben Bernanke, the Fed Chairman, indicated as a possible cause of inflation and reduce consumers’ spending ability.
Article provided TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox
