Many people feel that the increase in retail store merchandise sales show that the economy is recovering as people are more willing to spend. Retail sales were up in March and there is a positive outlook for April retail sales as well. Economic analysts feel that consumer spending is a strong indicator of where the economy is and since sales are increasing many believe the economy’s strength is too.
There are people who feel a little more conservatively on the issue as they say that many retailers are offering discounts or bargains to attract people that otherwise might not spend money on retail merchandise. If this were the case and people were buying bargains or sale items from retail stores then it might suggest the economy is not as strong as we had thought.
Unemployment is still a problem for many consumers as the job market is far from optimal and has a lot of room to grow. On the other side of that argument, many people feel that unemployed men and women are helping this retail increase by simply buying merchandise with money received from unemployment benefits. Yet, that might be a stretch as many people don’t have much money to throw around when they are on unemployment.
However, those who are more optimistic believe that retail store sales are increasing simply because people are feeling more comfortable about spending, more confident in their job security, and overall believe the economy is getting stronger. While retail sales are but one of the many economic indicators that can show where our economy is, in terms of strength, many are happy to see retailers bringing in more money as it may point to the economy getting back on track.