Friday, December 11, 2009
Sales have increased
By Jameel Murray
It is reported that retail sales have increased this year, which indicates growth in the U.S economy. According to Bloomberg.com, consumer confidence is increasing more than forecasts have predicted. Because consumer purchasing backs the economy, there have been a significant increase in the stock market lately. The Dow has reported a new high and the S & P as well as Nasdaq have performed considerably well. Throughout the month of November, sales have increased 1.3 percent, twice the amount it was forecasted to be. One main reason for these increases are the spike in sales promotions from multiple merchants.
U.S retail figures have also displayed increases in inventories and exports, which encouraged economists to increase forecasts for the fourth quarter. This holiday, merchants are expected to offer a great deal of sales, which may increase retail sales, even more. Although retail sales are increasing, the unemployment rate is still significantly high. Many have not understood the contradicting facts. One reason for the stock market’s improved performance along with a high unemployment rate is due in part to the lay offs of many salaries for companies. Because companies cut many salaries, due to a decrease in costs they were able to produce higher revenues.