Consumer confidence came out of hibernation in March, thanks in part to warm weather, new spring fashions and an early Easter, according to an article on Washingtonpost.com. Several retailers and department store chains reported strong March sales, surpassing industry analysts’ expectations.
Retail revenue rose 4.1 percent from a year ago among a handful of retailers surveyed by the International Council of Shopping Centers. Department store chains posted revenue nearly double of what was expected. Luxury chains also reported robust sales figures.
The boost in revenue received a nudge from consumers ready to shop. People are starting to feel better about the economy and wanting to spend more, analysts told the Washington Post. Clothing retailers, in particular, drew in shoppers looking for something new and different.
Easter came early this year, and that’s always a holiday that boosts spending. People buy new outfits and it has a huge impact on sales. This is also spring break for many colleges and that boosts the sales numbers. Ultimately, the economy is doing better, people are feeling better about it and that’s driving sales.
But analysts warn that because of the early Easter season, we’ll have to wait until April figures are released to get a complete picture of consumer spending. Rising gas prices in the upcoming months will also likely affect consumer confidence.
Source: StarTribune, April 2012
