Retail and Auto Sales Post Surprising Gains; Analysts See Consumer Confidence Growing
In a surprising burst of good economic news, the government yesterday reported an increase in retail sales and fewer workers seeking unemployment benefits.</br></br>At the same time, automakers reported a sharp early February rise in sales of North American-made vehicles, offering further hope that consumers are growing more confident about spending.</br></br>Retailers rang up a 0.6 percent increase in sales in January, the biggest in eight months, the Commerce Department said in a report suggesting shoppers may be ready to help revive the economy.</br></br>"Consumers are heading to the malls to shop again," said John M. Albertine, head of a Washington economic forecasting firm.</br></br>Cynthia Latta of economic forecasters DRI/McGraw-Hill Inc. of Lexington, Mass., said consumer sentiment appears to have bottomed out and should begin moving up slowly.