FLGS – Global Finance Report

WASHINGTON – The level of consumption in the United States (U.S.) to move beyond expectations. Although in December 2009 and many holiday, but retail sales data still registering a decrease of 0.3 percent (month on month / mom).

In fact, some analysts expect retail sales growth would be as much as 0.5 percent, which fell for the first time since last September 2009. In September, retail sales data this growth as much as 1.8 percent, while the figure even better in October.

Equally disappointing, the unemployment data also experienced an increase of 11 thousand, from which last week reported only 444 thousand. Though, initially projected that the unemployment rate will amount to 437 thousand.

“Are consumers going to take over the role of government to replace the demand was so great coming from government spending? If consumers can not do it, it will cause some significant risks to the recovery story,” said Director of Research from GFT Forex, Boris Schlossberg, as quoted by Reuters on Friday (15/1/2010).

However, capital spending is done so that technology companies boost profits, will divert attention from Wall Street’s weak economic data. In addition, the U.S. dollar also experienced weakening the yen.

The government seems to have the burden to defend the dollar, resulting in revenue for the automotive sector fell 0.8 percent, although the data showed industrial vehicle unit sales rose in December.