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Consumer confidence boosts US retail sales
Saturday December 12, 2009, 8:45 am

Retail sales in the United States have risen for the second straight month, boosting hopes that a major component of US economic activity is rebounding.

Consumer spending makes up two-thirds of the American economy and is a key to US economic growth.

The US Commerce Department says retail sales rose 1.3 per cent last month, more than double the 0.6 per cent increase analysts had expected.

Some special factors pushed up sales, including a 6.0 per cent rise in gasoline sales, a figure affected by higher prices. But electronics sales rose 2.8 per cent and auto sector sales 1.6 per cent.

General merchandise sales gained 0.8 per cent and building materials increased 1.5 per cent, but home furnishings and apparel sales fell 0.7 per cent.

Food and beverage sales were up 1.0 per cent.

A separate consumer sentiment report also shows an increase in consumer confidence.

In another positive sign, the commerce department reported an increase in the amount of stock being held by businesses, another signal of confidence that consumers are going to step up their purchases.