Looks like retail sales and consumer confidence improved in March (cue gloom/doomers)

[bigtree]

April 11 (Bloomberg) -- Sales and confidence probably climbed, manufacturing accelerated and home construction rebounded, making a lasting U.S. expansion more likely, economists said before reports this week.

“What we’ve seen in recent months is a broadening of the recovery that, in our view, already makes it self-sustaining,” said Dean Maki, chief U.S. economist at Barclays Capital Inc. in New York. “One of the main reasons consumer spending improved pretty dramatically in the first quarter is simply that income growth is improving.”

The biggest increase in payrolls in three years may be a harbinger of additional gains as employers become more certain sales will grow, which in turn will further lift wages and buying power. Another report this week is projected to show the recovery isn’t stoking inflation, one reason Federal Reserve policy makers will probably keep interest rates low for months.

Auto dealers were among retailers seeing the biggest jump in demand last month as industry data showed car sales rose to an 11.8 million annual pace, the highest rate since August, when the government’s cash-for-clunkers plan was in effect.

Broad-Based Gain

Excluding autos, retail sales probably increased 0.5 percent after a 0.8 percent gain the prior month, according to the survey . . .

Less Pessimism

Households may be feeling less pessimistic as a result. The Reuters/University of Michigan preliminary index of consumer sentiment for April probably rose to 75, the highest level since January 2008, according to the survey median. The figures are due April 16.


read more: http://www.businessweek.com/news/2010-04-11/retail-sales-probably-increased-in-march-u-s-economy-preview.html