U.S. Car Sales Up 27 percent, Retail Sales Also Increase:
The economy may be moving at a slow pace but this isn’t stopping consumers from purchasing automobiles. U.S. car shoppers came to dealerships in droves to get deals on new automobiles. Car manufacturers made prices attractive by adding incentives and keeping prices low. AP reports most automakers saw double digit gains in January.
Inflation fears continue to rise but this is evidence that consumers are still purchasing big ticket items and looking for deals. Consumer confidence is also improving. Consumers won’t lock themselves into 4-5 year deals when they think the economy is tanking.
Retail sales in February also support the evidence that consumers are more confident. Winter storms didn’t stop consumers from purchasing clothes and furniture according to MasterCard Advisor’s Spending pulse. Consumers are also spending more using credit which is generally expansionary.