Retail Sales Growth Choppy So Far This Year

Before you go, we thought you'd like these...
Before you go close icon

100267991For the third consecutive week since the beginning of the year, the ICSC-Goldman Sachs index of retail sales is down. For the week ending January 19th, sales fell 1.5% from the previous week.

For the year to date, however, the ICSC-Goldman Sachs index indicates that store sales are up 3.2%, significantly higher than the Redbook reported index which indicates much slower growth of 1.8% year-to-date.

With just three weeks of data in hand it's a bit risky to make sweeping generalizations about the direction of 2013 retail sales, but we could be seeing the first effects of the elimination of the 2% cut in payroll taxes on some 160 million Americans and the rise in the top tax rate on those who earn more than $450,000 a year.

Reuters cites one analyst who claims that the tax hikes could subtract a full percent from U.S. GDP growth in 2013 and another who believes the payroll tax hike alone will cut growth by 0.7% this year. Cutting federal spending, as many in Congress seem determined to push through, will not improve GDP growth; in fact, quite the reverse.

Filed under: 24/7 Wall St. Wire, Economy, Research, Retail Tagged: featured
Read Full Story


DJIA 20,624.05 4.28 0.02%
NASDAQ 5,838.58 23.68 0.41%
S&P 500 2,351.16 3.94 0.17%
DAX 11,757.02 -0.22 0.00%
NIKKEI 225 19,234.62 -112.91 -0.58%
HANG SENG 24,033.74 -73.96 -0.31%
USD (per EUR) 1.06 0.00 0.05%
USD (per CHF) 1.00 0.00 0.05%
JPY (per USD) 112.97 0.12 0.10%
GBP (per USD) 1.24 0.00 0.01%

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners