The AMI-Partners Blog

Sales at U.S. retailers increased a seasonally adjusted 0.5% in October 2011, indicates the monthly retail trade report released by the Census Bureau early Tuesday. Retail sales, making up nearly half of all consumer spending, serve as a major indicator of consumer spending trends.  While September retail sales grew at a higher month-to-month rate of 1.1%, October results were still ahead of analysts’ estimates of 0.2%. Although consumer sentiment continues to be undermined by high unemployment and the European debt woes, American confidence is reflected in the data.

This is a good sign for SMBs, many of whom rely on consumer discretionary spending for a portion of their revenues. A separate report released Tuesday indicates a 0.3% drop in wholesale prices—the biggest decline since February 2010—which indicates a slowdown in fuel-driven inflation pressures, and means more buying power for consumers. According to AMI-Partners, nearly 80% of U.S. SMBs feel that economic conditions will get better or stay the same over the next 3-6 months. As economic conditions continue to gain traction in the second half of 2011, there appear to be promising signs for improved U.S. SMB sales and overall business conditions.

This posting does not necessarily represent the opinions, recommendations or strategies of AMI-Partners.  Monik Sheth is a Market Research Analyst at AMI-Partners, and can be reached at MSheth@ami-partners.com.