Retail sales rose in October from the previous month and the rise comes mainly from consumers buying from clothing stores (up 1.4 percent) and sporting goods/hobby stores (up 1.6 percent). This is an indication that consumers in the United States may not cut back this holiday season) although there was the 16-day government shutdown at the beginning of the month.
Another big jump was in auto and motor vehicle sales which are up 1.4 percent from September. [September’s numbers for total retail sales remained an even 0.0 percent on the new report. October’s overall gain was the strongest in four months.
“I think it is going to be a great holiday season with people spending a lot of money,” says SMU’s associate economics professor Thomas Osang. “The stock market numbers also show that people are beginning to have more trust in the economy.”
On Tuesday Nov. 19, 2013 the stock market opened higher with the Dow crossing the 16,000 mark for the first time (the Dow ended up rising above 16,000 on Monday Nov. 25, 2013). Although there was optimism early on for the Dow, the S&P; 500 and Nasdaq finished the day in the red. Two stocks that have done well overall in 2013 include Best Buy and Netflix.
Retail sales are up 0.4 percent including motor vehicles and parts sales. Excluding those sales, which tend to be volatile, retail sales were up 0.2 percent. October marks the first time this year that sales have been growing for Suzanne Roberts, owner of a small boutique store named after her in Snider Plaza that sells home accessories, ornaments and decorative Santas for the upcoming holidays.
“People have been coming in to buy Christmas gifts even before Thanksgiving in order to give them to their loved ones early,” said Roberts. “I am sure we are going to have heavy sales coming up for the holiday season.”
Roberts has also turned to more marketing on social media sites such as Facebook and Twitter and has a Constant Contact email notifying her customers that there will be a three day sale starting on Black Friday. She says that this has allowed her business to take off after suffering from a long decrease in sales over the past year.
Many consumers are excited to go shopping but do not want to go on a busy day such as Black Friday.
“I hate Black Friday!” said homemaker Pam Martin, shopping in Snider Plaza with two of her friends. “I will be doing all my shopping early December and I will just have to get through the busyness of NorthPark.”
Consumers are looking to spend money for this upcoming holiday season. Many retailers have noticed and have taken the initiative to open a day earlier than Black Friday with their blockbuster sales. Although unemployment remains high and many government workers were furloughed during the government shutdown, in less than a week many of these same people will be lining up for the latest gaming system, a new toy for their daughter or a new television for their family. To investors this is a good thing. Stocks are rising and people are spending, which goes hand-in-hand with the economic growth this country desperately needs.
