Untold Strength -the U.S. Consumer , retail sales up 10 months in a row, best since 90’s

There is lingering concern about strength of the U.S. consumer.  The retail sales numbers for April say she is doing fine.  The following chart comes courtesy of Brian Wesbury at First Trust (see his blog here).  He has some important observations.  “Consumer spending is rising for two main reasons. First, earnings are growing due to more jobs, more wages per hour, and more hours per worker. Second, due largely to debt reductions, consumers’ financial obligations (debt service plus other recurring payments like rent, car leases, homeowners’ insurance, and property taxes) are now the smallest share of disposable income since 1995. All of this bodes well for spending in the months to come.”  There you have it friends.  Jeb Terry, Sr. May 27, 2011

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