Thursday, November 17, 2011
Globalization: Consumers Of The World Unite
Today we got news that the U.K. retail sales rose 0.6% M/M in October, well above a Bloomberg consensus forecast for a 0.2% decline (bloomberg). Food sales gained 0.6% in October from September, today’s data showed. Sales in the “other stores” category jumped 2.7%, led by computers and telecoms, sporting goods and toys, and jewelers. Excluding fuel, retail sales rose 0.6% on the month in October and were up 0.9% on the year.
In many other parts of the world the consumer spending also continues its solid growth. On Tuesday we got news that U.S. retail sales were up 0.5% from September to October (seasonally adjusted, after revisions), and sales were up 7.9% from October 2010. The U.S. consumer spending is supported by the strengthening job market (weekly jobless claims fell on a 6 month low). On Monday we learned that the Russian retail sales jumped in October 9.2% from a year earlier. This is the biggest increase since October 2008. Last week China reported that there the retail sales grew 17%.
As long as the consumer spending, the engine of the economy, is doing well in many parts of the world, there is no risk of a global recession.