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.
