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Retail sales rise more than expected

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Retail sales rose more than expected in November, boosting hopes that the all-important consumer sector will support the fragile recovery.

The government's report came as a surprise because the nation's retailers have been reporting generally lackluster results for the start of the holiday shopping season. Consumer spending accounts for 70 percent of overall economic activity.

But retail sales rose 1.3 percent last month, after a 1.1-percent October gain, the Commerce Department said Friday. It was the biggest advance since sales jumped 2.4 percent in August, and more than double the 0.6-percent increase economists had expected.

Excluding autos, retail sales rose 1.2 percent, triple the 0.4-percent advance economists expected.

A 6-percent surge in sales at service stations, partly reflecting higher gasoline prices, led the overall gain. But even excluding that jump, retail sales posted a respectable 0.8-percent rise in November.

Economists' general view has been that double-digit unemployment levels would keep consumers cautious in their spending and act as a drag on the economy as it struggles to emerge from the worst recession since the 1930s.

The November retail sales report showed that auto sales rose 1.6 percent, a solid performance after a 7.1-percent surge in October.

Sales at department stores increased 0.7 percent, and the broader category that includes big retailers such as Wal-Mart Stores Inc. and Target Corp. posted a 0.8-percent increase.

Sales also jumped 2.8 percent at electronics and appliance stores, and 1.5 percent at hardware stores.

Sales did fall 0.7 percent at furniture stores, something of a surprise since analysts had expected the recent rebound in home sales to bolster demand for furniture.

After posting two straight gains following more than a year of declines, big chain retail stores earlier this month reported a dip in November sales. Those figures don't include Wal-Mart, the world's largest retailer, which no longer reports monthly sales.

But a diverse group of stores, including Macy's Inc., Saks Inc., Abercrombie & Fitch Co. and Target, did post sharper-than-expected sales declines in November.

The overall economy rose at an annual rate of 2.8 percent in the July-September quarter, the first increase after a record four straight declines. Analysts had forecast growth to sag a bit in the current quarter and the first half of 2010 because they expected consumer spending would weaken under the weight of 10 percent unemployment.


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  1. something to take iman's mind off CART,,,the league itsownself doesn't do it

  2. Someone mentioned a green roof. Every designer of a new urban building should be required to at least explore the feasibility of a green roof. The ability to cut carbon dioxide, save precious rainwater (drought this summer??) and re-use grey water, cool the building cheaper, and improve the view for neighbors, should be, not only the good neighbor thing to do, it should be the responsible neighbor thing to do. Too bad the city didn't require it when they gave up downtown green space for the Simon Building. Surprised they aren't requiring it now.

  3. About the same means down, like the TV ratings.

    My favorite tradition that needs to be brought back is the 25/8 rule.

  4. Your stats are incorrect. The 85k Government employees working in Marion County includes all government workers in Marion county. That is state, federal, non profit agencies, city and county. The stats the article list is the number of employees for all of the city/county employees and it is correct. That number includes the library, airport, convention center, and so on. The policy of extending benefits to domestic partners is consistent with private sector companies of the same size. Isn't the mantra of most conservatives "run the government like a business."

    Also, too say the "fiscal proposil is huge" without considering the actuarial factors involved is a bit of an overstatement. We really don't know if it is huge or not. If all of the people added to the plan are healthy and don't have claims then it could bring cost done or hold them neutral.

  5. There are 85,346 government employees in Marion county according to Stats Indiana.

    My understanding is that this proposal covers not only same sex partners and children, but opposite same sex partners who are not married and any kids.

    It also covers all city and county employees, plus municipal corporations which use city/county benefits packages including Health and Hospital Corporation (Wishard), Indianapolis Airport Authority, Indianapolis Convention Center,Lucas Oil,Bankers Life, Indianapolis Marion County Library, and Indianapolis Public Transportation Corporation (IndyGo).

    Certainly Indianapolis Public Schools will also want more benefits also.

    The fiscal cost on this proposal is huge.

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