In the U.S., retail sales came out worst than expected. However, the underline numbers are pointing to recovery, as discretionary spending has been up-trending for over two months. In Europe, concerns are mounting over the creditworthiness of some member states, while the Eurocurrency stays under pressure for now.
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U.S.: imports to increase further?
The economic recovery is underway in the United State with some drawdown here and there. Unexpectedly, retail spending declined 0.3% in December (+0.4%), after having increased 1.8% in November and 1.2% in October. Motor vehicle and parts fell 0.8% compared to the gain of 1.2% registered the previous month. The poor weather conditions might have played a role in December. In addition, consumers have been used recently to do their Christmas shopping earlier in the year, so to take advantage of pre-holiday discounts. Consumer spending remains overall bumpy with the job and credit markets remaining weak. However, quarterly data confirms that the uptrend has already begun, as discretionary spending has been in green for two consecutive months. The jobless rate appears to stabilizing at current levels. Jobless claims rose slightly for the week ending January 9, but the four-week moving average declined to 441,000 from 450,000.
Angelo Airaghi is a Commodity Trading Advisor, registered with the National Futures Association and the Commodity Futures Trading Commission. He has been an active professional since 1990 working for major international financial companies. In the past 10 years, Angelo Airaghi has been an analyst and commentator for national and international media.
This article contains the following sections:
U.S.: imports to increase further?
EUROPE: Some nations under tight scrutiny
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