Spending

This economy continues to work miracles. Today we received Nov Retail Sales which at + 1.3% were about double expectations. The gains were relatively broad based, led by sales of gasoline and of vehicles, but most spending categories improved.

Whoa! Consumers continue to spend amid high unemployment, relatively stagnant income growth, rising foreclosures, high energy costs and tight credit. In several past blogs, including the last we cautioned that sales would linger along with lingering unemployment. Consumers are not going gang busters for sure but they're a heck of a lot more active than we expected them to be.

Robert Craven