Retail Sales Up February 2010

MINNEAPOLIS - One year after consumer confidence hit an all time low, people are back to treating themselves. Overall spending is still lukewarm, but, retailers say they're seeing better sales.

Because of high unemployment and tight credit, overall spending has been tight.
But economists are encouraged when they continue to see these types of bright spots the economy is starting to turning.

But while most Americans aren’t going on shopping sprees, they are starting to loosen the purse strings.

“The money is there. The desire to buy is there. People are just a little scared to part with their money,” said Buzz Anderson, Minnesota Retailers Association.

According to new survey by MasterCard, which includes cash purchases, Americans are spending more money than they did a year ago.

In February, the biggest winners were electronics, which were up nearly 6 percent, luxury sales including jewelry were up just over 15 percent and online shopping improved more than 16 percent

Anderson says, it’s a good sign but nothing to get too excited about. “Sales are up just a little. They’re not great but they’re ok.”

Anderson says, historically, Americans are saving more than they have in years. It is one of the best indicators of low consumer confidence. And when they do spend, they’re looking for bargains.

Analysts say, one reason the February sales figures looks so positive is because this time last year was the economy looked so bad by comparison.

But the good news is that retailers are seeing that up tick ever so slightly. And that’s what they’re pleased with. We’ll see if those numbers hold up.

This MasterCard survey comes just one day before retailers report on their annual sales. Analysts predict that chains will see a third straight quarter of modest growth.