US car sales stall in January
A sharp drop in car sales, reflecting the fall-off in zero-interest finance deals, saw United States retail sales dip by 0.2 per cent during January.
But the shoppers still flocked to the malls where they spent on a wide range of items from clothing to building and garden supplies. Excluding the volatile automotive market, overall retail sales increased by a worthwhile 1.2 per cent last month.
There was good news too from the business research group, US Conference Board, which showed a rise in consumer confidence for the second straight month in a row, indicating that the spending is likely to continue unabated.
Car sales fell 4.3 per cent as the mainstream motor manufacturers cut back on zero-percent finance deals. This followed a 1.1 per cent decline in December. US consumer spending, which accounts for about 60 per cent of economic activity, has consistently held out since the country officially entered recession in March 2001.
