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Good Times Here To Stay For Retail?

Economists anticipate that sales at retailers probably rose in November.  Indicators show Americans bought more new cars and shopped for the holidays, showing growth in the U.S. is picking up heading into 2012.

A  projected 0.6 percent gain in purchases would follow a 0.5 percent advance in October, according to the median forecast of 64 economists surveyed by Bloomberg News ahead of Commerce Department figures on Dec. 13.

The spending record set on Black Friday may mark the beginning of a prosperous holiday season, for the retail sector helping lift pessimism.  “Before Black Friday people were holding back, then they went all out,” said Chris G. Christopher, a senior principal economist at IHS Global Insight in Lexington, Massachusetts, in an interview with Bloomberg news. 

Online holiday shopping results were particularly jolly, according to comScore, Inc., a digital marketing research company.  Holiday e-commerce sales have reached $25 billion, including the first 39 days of the holiday season, which represents a 15% increase over the same time period last year. Strong marketing, free shipping, and attractive offers have conviced shoppers to spend money online rather than at retail locations.

comScore-holiday-shopping-data

The question is, can retail sales sustain momentum?  With the unemployment rate still high, no jobs bill in sight, and a cloud over much of this silver lining, in the form of the European crisis, many are pessimistic.

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Good Times Here To Stay For Retail?

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