The retail industry sees a surge in the US
Despite being hit by the coronavirus pandemic, it seems the retail sector in the US has recovered. There has been a gradual increase in sales of retail products in America.
Us retail industry experiences an increase
The American US retail sales have jumped to their highest percentage in seven months. This has suggested that the stimulus benefits given by the government have begun to yield positive results. This is expected to hasten the economic recovery in the US. The value of sales has surged to 5.2% after declining by 1% last month.
According to the US commerce department, this retail surge will be sustained as America crawls back to its pre-pandemic levels. This is the first increase in the retail industry since last year October. An increase in coronavirus infections has reduced the spending of citizens towards the year-end, but due to vaccine administration and low cases in Covid-19 business activity has continued to pick up.
Federal benefits seem to be affecting more purchases in stores
Also, some states in the US have started easing lockdown restrictions in major towns. The $550 stimulus benefits have helped citizens to buy products and use restaurants more frequently. The increase in sales in the retail sector could hinder the proposed President Biden's $2 billion plan which many GOP senators insist is too large and should be trimmed.
Though, Democrats have insisted that nothing will stop the plan from going through even without the Republicans on board. However, the Republicans could use this as evidence when trying to convince other senators to reduce the bill. Michael Gapen, a US Financial auditor has said fiscal aid allows most households to balance their accounts.
He said '' There is likely going to be another stimulus aid plan in March, and this will quicken goods demand and household spending. ''
He believes that with the continued COVID-19 vaccinations mobility and economic recovery are certain. Food sales have risen to 7% as movements are eased which allows limited business for restaurants and bars.