Opher BanarieJanuary's Silver Lining
February 12th 2009 19:32
In a surprising show of strength, the results of January's retail sales statistics shows an overall increase of 1 percent, the largest increase in 14 months.
The various "experts" were surprised, but some of this was predictable: Many people who received gift cards for the holidays used them in January. The revenue gets booked in January, even though the cash changed hands in December. Also, many retailers had various sales (some like Circuit City had close-out sales) and these lowered prices also attracted buyers.
Now that the huge stimulus plan has been passed by Congress and a conference committee has agreements on differences between the two Houses, the next few months' statistics will be very important to see if the economy is being "stimulated" or just being battered by poor government policies. (See George F. Will's column for more on this topic.)
Another important matter will be gasoline prices and supply. As the weather warms and more people get on the roads nationally, it is common to see prices rise. Already prices are $.20 to $.25 more per gallon than the lows a month ago. By May will we be treading near last year's $5 prices? Only time will tell.
The various "experts" were surprised, but some of this was predictable: Many people who received gift cards for the holidays used them in January. The revenue gets booked in January, even though the cash changed hands in December. Also, many retailers had various sales (some like Circuit City had close-out sales) and these lowered prices also attracted buyers.
Now that the huge stimulus plan has been passed by Congress and a conference committee has agreements on differences between the two Houses, the next few months' statistics will be very important to see if the economy is being "stimulated" or just being battered by poor government policies. (See George F. Will's column for more on this topic.)
Another important matter will be gasoline prices and supply. As the weather warms and more people get on the roads nationally, it is common to see prices rise. Already prices are $.20 to $.25 more per gallon than the lows a month ago. By May will we be treading near last year's $5 prices? Only time will tell.
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