Sales at US retailers probably rose last month for the first time in three months as demand for automobiles picked up, economists said before a government report this week.
Purchases climbed 0.5 percent, according to the median of 61 estimates in a Bloomberg News survey ahead of Commerce Department figures due on Thursday. Another report may show the trade gap widened in April, reflecting an increase in the cost of imported oil.
Shoppers returned to Chrysler LLC and General Motors Corp showrooms looking for bargains as some dealers slashed prices leading up to the automakers’ restructuring. Smaller job cuts and government stimulus measures may give consumers the confidence and means to sustain spending and help pull the economy out of the recession.
“Consumers are out there spending again,” said Ellen Zentner, a senior economist at Bank of Tokyo-Mitsubishi UFJ Ltd in New York. “They are clearly feeling better about the health of their finances.”
The Labor Department reported last week that employers eliminated 345,000 jobs last month, the fewest since September and a sign the recession is abating. Retailers cut 17,500 positions, the smallest reduction since last June, the month before purchases started to sink.
Sales of cars and light trucks rose to a 9.9 million annual unit pace last month from a 9.3 million rate the prior month, according to industry figures released last week. Purchases reached a 9.1 million pace in February, the lowest level since December 1981.
General Motors, Chrysler and Ford Motor Co, the only major US automaker not in bankruptcy, all had smaller declines than forecast in comparison with last May.
“It’s just a slight uptick,” Ken Czubay, Ford vice president of sales and marketing, said on a conference call last week. “This is still a very fragile industry.”
Commerce’s report may also show that, excluding automobiles, sales rose 0.2 percent last month, according to the median estimate of economists surveyed.
The increase is likely in part due to an increase in service-station receipts as gasoline prices climbed.
The International Council of Shopping Centers last week said last month’s same-store sales dropped 4.6 percent from the same month last year, more than double its forecast of a 2 percent decline. Macy’s Inc, Dillard’s Inc and Saks Inc were among merchants that reported steeper declines than analysts estimated as Americans focused on buying essentials rather than discretionary items.
With home values falling, credit tight and unemployment at a 25-year high of 9.4 percent and forecast to keep rising, consumers are reluctant to spend on anything beyond necessities such as gasoline and food.
Wal-Mart Stores Inc, the biggest retailer, projected last month that its US comparable-store sales may rise as much as 3 percent in the 13 weeks through July 31.
As the economy steadies and oil prices climb, imports are likely to rise. The trade deficit probably widened to US$29 billion in April, according to economists surveyed, from US$27.6 billion the prior month. The Commerce Department will release that report on Wednesday.
Business inventories probably shrank 1 percent in April, an eighth consecutive decrease, as companies continued to draw down stockpiles in the face of weak demand, economists said.
A report from the Labor Department on Friday may show the cost of imported goods rose 1.4 percent last month, due mainly to higher oil prices, the survey showed. Import prices increased 1.6 percent the prior month.
Rising stock prices and signs the economy may have bottomed are boosting consumer confidence. The Reuters/University of Michigan preliminary sentiment gauge for this month may rise to 69.5, the highest reading since September, from 68.7 last month, according to economists surveys.
DETERRENCE: With 1,000 indigenous Hsiung Feng II and III missiles and 400 Harpoon missiles, the nation would boast the highest anti-ship missile density in the world With Taiwan wrapping up mass production of Hsiung Feng II and III missiles by December and an influx of Harpoon missiles from the US, Taiwan would have the highest density of anti-ship missiles in the world, a source said yesterday. Taiwan is to wrap up mass production of the indigenous anti-ship missiles by the end of year, as the Chungshan Institute of Science and Technology has been meeting production targets ahead of schedule, a defense official with knowledge of the matter said. Combined with the 400 Harpoon anti-ship missiles Taiwan expects to receive from the US by 2028, the nation would have
POSSIBILITIES EMERGE: With Taiwan’s victory and Japan’s narrow win over Australia, Taiwan now have a chance to advance if South Korea also beat the Aussies Taiwan has high hopes that the national baseball team would advance to the World Baseball Classic (WBC) quarter-finals after clinching a crucial 5-4 victory over South Korea in a nail-biting extra-inning game at the Tokyo Dome yesterday. Boosted by three home runs — two solo shots by Yu Chang (張育成) and Cheng Tsung-che (鄭宗哲) and a two-run homer by Stuart Fairchild — the triumph gave Taiwan a much-needed second victory in the five-team Pool C, where only the top two finishers would advance to the knockout stage in Miami, Florida. Entering extra innings with the game tied at four apiece, Taiwan scored
MISSION OF PEACE: The foreign minister urged Beijing to respect Taiwan’s existence as an independent nation, and work together to ensure peace and stability in the region Minister of Foreign Affairs Lin Chia-lung (林佳龍) yesterday rejected Chinese Minister of Foreign Affairs Wang Yi’s (王毅) comments about Taiwan, criticizing China as a “troublemaker” in the international community and a disruptor of cross-strait peace. Speaking at a news conference on the sidelines of the Chinese National People’s Congress, Wang said that Taiwan has always been a territory of China and that it would be impossible for it to become its own country. The “return” of Taiwan to China was the natural outcome of the Chinese people’s resistance against Japan in World War II, and that any pursuit of independence was “doomed
‘UNWAVERING FRIENDSHIP’: A representative of a Japanese group that co-organized a memorial, said he hopes Japanese never forget Taiwan’s kindness President William Lai (賴清德) yesterday marked the 15th anniversary of the Tohoku earthquake and tsunami, urging continued cooperation between Taiwan and Japan on disaster prevention and humanitarian assistance. Lai wrote on social media that Taiwan and Japan have always helped each other in the aftermath of major disasters. The magnitude 9 earthquake struck northeastern Japan on March 11, 2011, triggering a massive tsunami that claimed more than 19,000 lives, according to data from Japanese authorities. Following the disaster, Taiwan donated more than US$240 million in aid, making it one of the largest contributors of financial assistance to Japan. In addition to cash donations and
RSS