Bad Credit Mortgage Refinance ®
		Home Page Mortgage News You Can Use Retail Sales Excluding Autos in U.S. Rise 0.9 Percent, Most in 5 Months Feb. 12 (Bloomberg) -- Sales at U.S. retailers excluding auto dealers increased 0.9 percent in January, the biggest rise in five months, as consumers took advantage of post-holiday discounts at department stores. First-time unemployment claims set a two-month high, partly because of weather-related layoffs. Last month's retail-sales gain follows a revised 0.2 percent increase in December, the Commerce Department said in Washington. Including autos, sales fell 0.3 percent to $322.9 billion, the first drop since September. A Labor Department report showed first- time claims for unemployment benefits unexpectedly rose last week to a two-month high of 363,000 from 357,000. Consumers ``merely need to hold up reasonably well to help sustain robust economic growth,'' said Stephen Stanley, chief economist at RBS Greenwich Capital in Greenwich, Connecticut. Tax refunds ``and a pickup in job growth should ensure that households continue to spend.'' Americans redeemed gift cards last month at chains such as Wal-Mart Stores Inc., Gap Inc. and Sears, Roebuck & Co., helping general-merchandise stores to the biggest gain since May. Consumers were a ``mainstay'' of last year's expansion and the Federal Reserve forecasts the economy will grow as much as 5 percent this year, the strongest in two decades, Chairman Alan Greenspan said in testimony to Congress that continues today. The lowest benchmark interest rate since 1958 and tax cuts have helped support household spending, and Greenspan told the Senate Banking Committee today he favors making last year's tax cuts permanent as long as spending is reduced as well to help reduce the federal budget deficit. Greenspan and Jobs Separately, the Commerce Department said business inventories rose 0.3 percent in December, a fourth straight gain, as companies tried to keep up with rising sales and orders. The increase at manufacturers, retailers and wholesalers to $1.191 trillion followed a 0.4 percent gain in November. The ratio of inventories to sales fell to a record-low 1.34 months' supply, from 1.35 months. Greenspan told a House committee yesterday that it is ``probably feasible'' for the economy to meet President George W. Bush's forecast of 2.6 million jobs this year, provided that productivity rates fall to more traditional levels. ``It seems very likely that the extraordinary pace of productivity is almost surely going to slow'' because businesses will ``eventually run out of opportunities to exploit all those inefficiencies,'' he told senators today. Economists had projected 345,000 first-time claims last week after an initially reported 356,000 the week before, based on the median of 34 estimates in a Bloomberg New survey. No forecast was higher than 355,000. Claims Data Storms in parts of the country may have caused layoffs at construction companies, leading to an increase in filings for a second week, a Labor spokesman said. The four-week claims average, a less volatile measure, rose by 5,000 to 350,500. A 23,000 decline in the number of people continuing to collect state jobless benefits to 3.083 million and a 0.1 point drop in the insured rate of unemployment to 2.4 percent suggests the nation's unemployment rate may drop again, said Joseph LaVorgna, senior U.S. economist at Deutsche Bank Securities Inc. The rate fell to 5.6 percent in January from 5.7 percent. Greenspan told lawmakers that ``the picture has brightened'' for the economy and ``employment will begin to grow more quickly before long as output continues to expand.'' The economy may grow 4.5 percent to 5 percent from the fourth quarter of 2003 to the same three months this year, according to the Fed forecast. `Picture Has Brightened' ``The economic recovery is just starting,'' said Alan Krock, chief financial officer of computer-chip maker PMC-Sierra Inc., in a televised interview with Bloomberg. Growth is picking up in Europe as well. The German economy grew 0.2 percent from the third to fourth quarter while French gross domestic product expanded 0.5 percent in the same period, their governments said today. France's pace was the fastest in six quarters. Economists had expected retail sales would be little changed at $325 billion last month following a 0.5 percent gain initially reported for December, according to the median of 62 forecasts in a Bloomberg News survey of economists. Sales excluding automobiles were expected to rise 0.5 percent following a previously reported 0.1 percent December rise. Retail Sales ``Already it appears that there is a significant upside risk to our 4.5 percent GDP estimate for the first quarter,'' said Henry Willmore, chief U.S. economist at Barclays Capital Inc. The gain in retail sales and an expected increase in industrial production suggest growth may be stronger, he said. Sales at general merchandise stores, which include department stores, rose 1 percent last month, the biggest increase since July, after rising 0.3 percent in December. Sales at clothing and accessory stores rose 2.9 percent, the largest gain since October 2002. Department stores sold 0.5 percent more merchandise. ``We've had very strong results,'' said Philip Roizin, chief financial officer at Brookstone Inc., a retailer of specialty electronic devices, in an interview Friday. A 12.6 percent rise in fourth-quarter sales makes it ``more likely'' Brookstone will hire and invest in new equipment in carrying out plans to open 15 to 20 new stores this year, Roizin said. Auto Sales Sales at automobile dealerships and parts stores declined 3.9 percent last month, the most since February 2003, after rising 0.2 percent. Automakers sold 16.1 million cars and light trucks at an annual pace in January compared with 18 million a month earlier, according to industry reports released earlier this month. The Commerce Department uses industry figures to help calculate gross domestic product. ``We expect February auto sales figures to snap back sharply,'' said Joseph Abate, a senior economist at Lehman Brothers Inc. in New York. ``Given the very generous level of cash incentives, together with super-cheap financing, and low prices, we think that the return of more seasonable weather will bring out buyers.'' Chain-store sales climbed 5.8 percent last month, the biggest January increase since 1999, according to a report last week from the International Council of Shopping Centers. Wal-Mart, the world's biggest retailer, reported a larger- than-expected 5.7 percent increase in sales compared with the same period last year. Gap, the largest U.S. clothing chain, said sales rose 3 percent while Sears reported a 4.6 percent rise. Cold weather in the Northeast and Midwest fueled demand for gloves, hats and scarves. Sales Outlook Retailers are seeing sales accelerate this month. Purchases rose 1.8 percent for the week ended Feb. 7 compared to the week earlier, according to a report issued today by the shopping center council and UBS, which track sales at 75 chains. Receipts are up 0.9 percent compared to the same time last month. Sales are rising amid improving confidence and more jobs. The economy added 112,000 jobs last month and the unemployment rate fell to a two-year low of 5.6 percent, the Labor Department reported Friday. The improvement is being reflected in rising consumer confidence. The University of Michigan's sentiment gauge reached a three-year high last month while the Conference Board's measure rose to the highest in over a year.   Back to Original Article: News You Can Use   Continue with: Mortgage Rates at a Near Standstill U.S. mortgage rates unchanged Wednesday - BestInfo Budget deficits a risk to low interest rates, Greenspan says Bad Credit Home Loan Secrets Officials order new mutual fund reforms Greenspan provides fuel for dollar decline Dollar, gold mixed in Europe U.S. Treasury Bond Prices Higher
		Bad Credit Mortgage Refinance