Signs that spending may be picking up
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BILL RADKE: Numbers out today show we are opening our wallets a teeny bit more than we did over the summer. Marketplace’s Eve Troeh is here live to tell us more. Hi Eve.
EVE TROEH: Hi.
RADKE: So we’re going to get a a clearer picture of September spending tomorrow when the big retailers release their numbers. But there are some hopeful signs today?
TROEH: Yes, hope in the form of MasterCard. Well, specifically their Spending Pulse report, and that tracks card swipes as well as cash transactions. It shows people bought lots of school supplies, clothes for kids and teenagers, and small electronics last month — that makes sense for back-to-school season. Costco also reported a 10 percent increase in sales for September and that helped them report a better-than-expected profit for the fourth quarter. So Costco, socks, calculators — we’re mostly buying basics here, not luxuries. But economists are happy to see any signs of growth at all.
RADKE: Yeah, I imagine. What about Santa suit sales? That’s what’s really making them smile, right?
TROEH: Well, a bunch of economists in Santa suits would make me smile. But yes, investors and retailers are flipping the calendar ahead to November and December and they hope the little bitty growth we’re seeing right now will mean a stronger holiday shopping season. The National Retail Federation expects a boost of about 2 percent in holiday sales from last year. That doesn’t sound like much, but that would make this the best holiday season since 2006. And stores could hire more people to work there as well.
RADKE: Let’s hope so. Marketplace’s Eve Troeh, thank you.
TROEH: Thanks.
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