Retail Sales, Industrial Production Exceeds Expectations

April’s retail sales upped 0.4% for the seventh consecutive month, as reported by the Commerce Department today. The gain was better than the expectations of 0.2%, but far below the 2.1% jump in March. Sales in April have risen owing to increased consumer spending, which in turn resulted from higher factory output. The latest sales growth figures have offered hope that economy is headed towards recovery in the months ahead.

The Commerce Department reported that business inventories for the month of March have risen by 0.4%, in line with the expectations. The surge in inventories for a third successive month has reaffirmed that businesses are building up confidence in the strength of economic recovery. Total business sales grew for the sixth straight month, by 2.3%, the highest jump in four months. It is believed that sustained increase in demand will encourage businesses to ramp up orders and refill depleted shelves, giving a boost to factories and prompting them to re-employ workers.

US industrial production in April has risen more than expected, further proving that some sectors of the economy are forging ahead, despite persistently high unemployment. The Federal Reserve announced today that output of the US industrial sector climbed 0.8% in April, after a 0.2% increase in March. Analysts were expecting an average gain of 0.6%. Industry accounts for a relatively small portion of the largely service-driven US economy.

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