Retail sales rebound

Jobless figures point to sluggish labor market

? Shoppers, after cutting back in April, opened their pocketbooks and wallets a bit wider in May, pushing up sales at the nation’s retailers by 0.1 percent.

The tiny rise reported Thursday by the Commerce Department came after consumers awoke from a shopping slumber that caused retail sales to drop by 0.3 percent in April, according to revised figures. That represented a deeper decline than the 0.1 percent decrease reported a month ago.

Shoppers actually exhibited more strength in May than the 0.1 percent rise suggests.

A sizable 4.3 percent drop in sales at gasoline stations reflected lower prices at the pump and restrained the overall growth in retail sales. When gasoline station sales are removed from consideration, retail sales rose a solid 0.4 percent in May, the government said.

Consumers, who have been the main force keeping the economy going, spent more freely in May, driving up sales of furniture, electronics, appliances and clothing. They also treated themselves more by going to restaurants and bars.

The 0.1 percent rise in retail sales was slightly stronger than the flat reading that economists had forecast.

Pedestrians pass a shop offering buying incentives in downtown Philadelphia. Shoppers, after cutting back in April, spent more in May, pushing up sales at the nation's retailers by 0.1 percent.

Low interest rates and a refinancing boom that has left people with extra cash and solid home values are some of the factors offsetting the negative forces of a sluggish job market, where the nation’s jobless rate climbed to a nine-year high of 6.1 percent in May.

In another report, the number of American workers filing new applications for unemployment benefits last week dropped by a seasonally adjusted 17,000 to 430,000, the Labor Department said. Even with the drop, claims still remained above the 400,000 mark, a level that economists say points to a lackluster job market.

The more stable, four-week moving average of claims, which smooths out weekly fluctuations, rose to a four-week high last week of 433,750.

The number of workers who continue to draw jobless benefits climbed to a 20-year high of 3.8 million for the work week ending May 31, the most recent period for which that information was available. That number suggests that not a lot of hiring is going on, economists say.

The Federal Reserve has kept a key, short-term interest rate at a 41-year low of 1.25 percent, with the hope that it will motivate consumers and businesses to spend and invest more, bolstering economic growth. Economists expect the Fed to reduce that rate at its next meeting on June 24-25.

While consumers have been doing their part to carry the economy, businesses have not. Businesses, wanting profits to fully heal and trying to cope with the uneven recovery, have been wary of making big investments in capital spending and in hiring. That’s the main factor hampering the economy’s return to full economic speed.

Sales tax collections rose during May in Douglas County and Lawrence, but sales growth for the year remained stagnant.According to statistics from the Kansas Department of Revenue, Douglas County sales tax collections for May increased 13 percent to $1.03 million, compared to year-ago figures. Lawrence collections were $948,028, up 11 percent from a year ago.For the fiscal year, Douglas County has collected $10.8 million, up 1 percent. In Lawrence, collections for the fiscal year are up 0.6 percent to $9.9 million.