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US retail sales post a rebound
http://www.sina.com.cn 2003/06/13 10:47  Shanghai Daily

  Shoppers, after cutting back in April, opened their pocketbooks and wallets a bit wider in May, pushing up sales at the United States retailers by 0.1 percent.

  The tiny rise reported by the Commerce Department yesterday came after consumers awoke from a shopping slumber that caused retail sales to drop by 0.3 percent in April, according to revised figures. That represented a deeper decline than the 0.1 percent decrease reported a month ago.

  Shoppers actually exhibited more strength in May than the 0.1 percent rise suggests.

  A sizable 4.3 percent drop in sales at gasoline stations reflected lower prices at the pump and restrained the overall growth in retail sales. When gasoline station sales are removed from consideration, retail sales rose a solid 0.4 percent in May, the government said.

  Consumers, who have been the main force keeping the economy going, spent more freely in May, driving up sales of furniture, electronics and appliances, and clothing. They also treated themselves more to restaurants and bars.

  The 0.1 percent rise in retail sales was slightly stronger than what economists were forecasting.

  Low interest rates and a refinancing boom that has left people with extra cash and solid home values are some of the factors offsetting the negative forces of a sluggish job market, where the nation's unemployment rate climbed to a nine-year high of 6.1 percent in May.

  In another report, the number of American workers filing new applications for unemployment benefits last week dropped by a seasonally adjusted 17,000 to 430,000, the Labor Department said. Even with the drop, claims still remained above the 400,000 mark, a level that economists say points to a lackluster job market.

  The number of workers who continue to draw jobless benefits climbed to a 20-year high of 3.8 million for the work week ending May 31, the most recent period for which that information is available. That number suggests that not a lot of hiring is going on, economists say.

  The weak US economy may be on the verge of a rebound, the Federal Reserve said on Wednesday. The central bank said that four of its 12 districts - Dallas, Kansas City, New York and Minneapolis - detected signs of increased economic activity and no district reported further deterioration since late April.




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